Multiple Choice
If equilibrium real GDP demanded rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion,how large is the marginal propensity to consume?
A) 0.8
B) 0.4
C) 0.5
D) 0.2
E) 2
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The introduction of a $100 autonomous net
Q4: Government purchases are assumed to be autonomous
Q5: If the MPC = 0.6 and government
Q6: If the government decreases net autonomous taxes
Q7: In which of the following ways does
Q8: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q9: A $200 increase in government purchases has
Q10: Which of the following is a component
Q11: The simple tax multiplier is<br>A)1/MPC<br>B)1<br>C)1/(1 - MPC)<br>D)MPC/(1
Q49: Which of the following statements best explains