Multiple Choice
An economy has no imports or income taxes.The MPC is 0.75 and real GDP is $120 billion.Businesses increase investment by $4 billion.The new level of real GDP is
A) $124 billion.
B) $128 billion.
C) $132 billion.
D) $136 billion.
E) $140 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Q218: Define autonomous consumption and explain how it
Q219: An increase in the marginal tax rate<br>A)
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Q221: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt=" The figure
Q222: The slope of the consumption function is<br>A)
Q224: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt=" -The above table
Q225: The value of the expenditure multiplier changes
Q226: The fraction of a change in disposable
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Q228: The multiplier means that an increase in