Solved

Recently, the Level of GDP Has Declined by $60 Billion

Question 184

Multiple Choice

Recently, the level of GDP has declined by $60 billion in an economy where the marginal propensity to consume is 0.75.Aggregate expenditures must have fallen by


A) $45 billion.
B) $30 billion.
C) $15 billion.
D) $60 billion.

Correct Answer:

verifed

Verified

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

Related Questions

Q118: In a private closed economy, when aggregate

Q179: In a mixed open economy, the equilibrium

Q181: An increase in imports, other things constant,

Q182: John Maynard Keynes expressed his ideas about

Q183: If MPC = 0.5, a simultaneous increase

Q185: If a government raises its expenditures by

Q186: Say's law in classical economics suggests that,

Q187: The investment schedule shows the<br>A)inverse relationship between

Q188: If a nation imposes tariffs and quotas

Q189: Assume the current equilibrium level of income