Multiple Choice
If households spend $0.40 of each additional dollar of increased income,the expenditure multiplier will be
A) 1.67.
B) 2.5.
C) 4.
D) 6.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q31: If the output gap is greater than
Q32: If potential GDP for the first quarter
Q33: List three reasons why nominal wages can
Q34: A shock that increases the costs of
Q35: What is the multiplier effect and when
Q37: All of the following are reasons for
Q38: One reason why an economy may not
Q39: If potential GDP for the fourth quarter
Q40: From 1950 to 2009,the average length of
Q41: Explain what a macroeconomic shock is,and give