Multiple Choice
If the MPC is 0.8, and the government spends an additional $100 billion, the overall effect on GDP will be _______ billion.
A) $400
B) $500
C) $120
D) $180
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q18: What is the equation for aggregate expenditure?<br>A)
Q19: If consumers increase their preference for foreign
Q20: If the government wishes to increase GDP
Q21: If PAE is greater than Y, we
Q22: If the government wishes to increase GDP
Q24: Foreign income is earned:<br>A) by a nation's
Q25: The figure shows planned aggregate expenditure and
Q26: The figure shows planned aggregate expenditure and
Q27: The Keynesian equilibrium occurs when:<br>A) planned inventories
Q28: Which of the following is a determinant