Multiple Choice
Suppose the MPC equals 0.75 and G increases by $100.By what amount will real GDP demanded increase?
A) by $25
B) by $50
C) by $200
D) by $400
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q100: Assume autonomous net taxes fall by $300,
Q101: Suppose the economy is already producing at
Q102: Exhibit 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-2
Q103: Suppose transfer payments and autonomous taxes both
Q104: Which of the following is NOT a
Q106: Assume autonomous net taxes rise by $500,
Q107: Assume that initially G is $100 and
Q108: Which of the following did Keynes think
Q109: Assume autonomous net taxes fall by $300,
Q110: Exhibit 11-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-4