Multiple Choice
If the economy spends 80% of any increase in real GDP, then an increase in autonomous investment of $1 billion would result ultimately in an increase in equilibrium real GDP of
A) $0.8 billion.
B) $1.0 billion.
C) $1.8 billion.
D) $5.0 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q60: If consumption increases by $75 billion when
Q61: Use the following to answer questions .<br>Exhibit:
Q62: Let AE = Aggregate Expenditures, C =
Q63: Let AE = Aggregate Expenditures, C =
Q64: Use the following to answer questions .<br>Exhibit:
Q66: In general, an increase in the income
Q67: If an economy spends 90% of any
Q68: An increase in the slope of the
Q69: Consider a simple aggregate expenditure model where
Q70: Suppose the consumption function is C =