Solved

If the Spending Multiplier Is 1

Question 45

Multiple Choice

If the spending multiplier is 1.2,then a $100 billion increase in government spending will increase private sector spending by

A) $100 billion.
B) $120 billion.
C) $83.3 billion.
D) $20 billion.

Related Questions

Q40: Which recent president raised taxes when the

Q41: When the government competes with the private

Q42: The government's decisions about spending and taxation

Q43: If tax cuts are stimulative,tax increases are<br>A)

Q44: Government spending is funded by a system

Q46: What is one of the central concepts

Q47: Supply-side economics focuses on the<br>A) average tax

Q48: An increase in government spending is more

Q49: When government revenues exceed spending,that is called

Q50: The portion that households spend of each