Multiple Choice
Assume that the MPC = .75. The government of Ecoland announces that it will spend an additional $40 billion on flu shot immunizations this year to counteract a growing flu epidemic. If the full multiplier effect occurs, this spending will lead Ecoland's to:
A) grow by $80 billion.
B) fall by $53.33 billion.
C) grow by $300 billion.
D) grow by $160 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Q58: (Figure: Aggregate Expenditure Model 0) The figure
Q59: A government announces that it will increase
Q60: (Figure: KSRAS) The figure shows the Keynesian
Q61: The MPC is 2/3. Real GDP is
Q62: In the aggregate expenditures model, an economy's
Q64: If autonomous spending rises by $8 billion
Q65: (Table 2: Economic Data for Four
Q66: The MPC = 2/3. Autonomous spending rises
Q67: (Figure: Aggregate Expenditure Model) The figure shows
Q68: Changes in _ do NOT cause the