Solved

At Equilibrium, If Spending Increases by $1,200 and the Corresponding

Question 220

Multiple Choice

At equilibrium, if spending increases by $1,200 and the corresponding increase in income is $1,500, what is the multiplier?

A) 0.2
B) 0.8
C) 1
D) 5

Related Questions

Q215: In Keynesian macroeconomic equilibrium, there are pressures

Q216: Suppose full employment real GDP is $12

Q217: Expectations of a future general price increase

Q218: The marginal propensity to consume plus the

Q219: If consumption falls from $600 billion to

Q221: The spending reduction necessary to bring an

Q222: Aggregate expenditures is equal to C +

Q223: If autonomous investment spending falls by $1,000

Q224: In the simple Keynesian model, the only

Q225: The Keynesian conclusion that total injections equal