Multiple Choice
Suppose that John Maestro, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000, and the MPC is 0.80. How much real GDP will be generated from John's $1,000 initial investment?
A) $200
B) $500
C) $1,000
D) $2,000
E) $5,000
Correct Answer:
Verified
Correct Answer:
Verified
Q16: The greater the marginal propensity to consume
Q33: Within the framework of the Keynesian model,
Q39: If the marginal propensity to consume (MPC)
Q59: The equilibrium level of real GDP is
Q60: Unplanned inventory depletion occurs when real GDP
Q61: In the aggregate expenditures model, if an
Q63: The effect of an increase in investment
Q65: Exhibit 9-1 GDP and consumption data<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"
Q68: If firms increase their investment spending by
Q86: At the equilibrium level of real GDP,