Solved

Suppose That the Level of GDP Increased by $100 Billion

Question 59

Multiple Choice

Suppose that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by


A) $100 billion.
B) $50 billion.
C) $500 billion.
D) $5 billion.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q54: If net exports decline from zero to

Q55: <span class="ql-formula" data-value="\begin{array}{l}\begin{array} { | c |

Q56: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the

Q57: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the

Q58: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the

Q60: <span class="ql-formula" data-value="\begin{array} { | c |

Q61: If a lump-sum income tax of $25

Q62: Planned investment plus unintended increases in inventories

Q63: If net exports are positive,<br>A) the equilibrium

Q64: What will be the effect of an