Solved

Suppose the Government Increases Its Purchases by $100 and the Multiplier

Question 28

Multiple Choice

Suppose the government increases its purchases by $100 and the multiplier is 4.How does equilibrium real GDP demanded change?

A) It increases by $25.
B) It decreases by $25.
C) It increases by $400.
D) It decreases by $400.

Related Questions

Q23: Suppose a $100 autonomous net tax is

Q24: <span class="ql-formula" data-value="\begin{array} { c c c

Q25: Which of the following describes functional finance?

Q26: What does the steepness of the short-run

Q27: Other things constant, what causes a decrease

Q29: In 2012, which of the following countries

Q30: Exhibit 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-2

Q31: Which of the following is NOT a

Q32: Suppose the government wants to cause equilibrium

Q33: Which of the following is a difference