menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Economics
  4. Exam
    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    To Eliminate a Deflationary Gap When the MPC Is 0
Solved

To Eliminate a Deflationary Gap When the MPC Is 0

Question 41

Question 41

Essay

To eliminate a deflationary gap when the MPC is 0.75 and the deflationary gap is $500 million, investment will need to increase by how much?

Correct Answer:

verifed

Verified

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

Related Questions

Q36: Personal income tax revenue and transfer payments

Q37: If MPC = 0.9, then the government-purchases

Q38: Which of the following cannot stabilise a

Q39: Suppose the government reduces taxes by $200

Q40: Assume that the MPC is 0.5.A $100-billion

Q42: According to classical macroeconomic theory, an increase

Q43: Suppose we observe that an increase in

Q44: Suppose government purchases increase by $100 billion,

Q45: At a higher price level, the demand

Q46: The two macroeconomic effects that make the

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines