Multiple Choice
If the government spends $1 billion to create a wetlands preserve, taxes increase $1 billion to pay for it, and the marginal propensity to consume is 0.75, GDP
A) decreases by $1 billion.
B) increases by $1 billion.
C) increases by $4 billion.
D) remains unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: To understand the paradox of thrift, it
Q3: Investment levels depend mainly on<br>A) high levels
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Q5: Which of these will NOT cause an
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