Multiple Choice
If the government increases its purchases by $100 and the multiplier is 4,then equilibrium real GDP demanded
A) increases by $25
B) decreases by $25
C) increases by $100
D) increases by $400
E) decreases by $400
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Of the following fiscal programs,which has the
Q13: The introduction of a $100 autonomous net
Q14: If autonomous net taxes increase by $200
Q15: The simple tax multiplier must always be
Q16: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q18: The formula for the multiplier that results
Q19: The introduction of an autonomous net tax
Q20: A $100 increase in government purchases will
Q21: Assume autonomous net taxes rise by $400;
Q22: Suppose both autonomous taxes and transfer payments