Multiple Choice
If the MPC is 0.75 and there are no crowding-out or accelerator effects, an initial increase in AD of $100 billion will eventually shift the AD curve to the right by how much?
A) $40 billion
B) $133.33 billion
C) $250 billion
D) $400 billion
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q106: In principle, the government could increase government
Q107: If the MPC is 0.4, the MPI
Q108: What tends to make the size of
Q109: According to the crowding-out effect, how does
Q110: If the MPC is 0.6, what is
Q112: The multiplier is equal to MPC/(1 -
Q113: What is the most likely effect of
Q114: If households view a tax cut as
Q115: Assume that the MPC is 0.75. Assuming
Q116: If the MPC = 0.5 and the