Multiple Choice
Other things being constant, if the marginal propensity to save (MPS) is 0.2, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)
A) decreases by $50 million.
B) increases by $80 million.
C) decreases by $500 million.
D) increases by $1 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Q51: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q52: An increase in the marginal propensity to
Q53: Which of the following will cause an
Q54: What is the result when real planned
Q55: If initial equilibrium real Gross Domestic Product
Q57: Government purchases<br>A) are determined by the public.<br>B)
Q58: If real Gross Domestic Product (GDP) is
Q59: Assuming that Yd = $10,000 and C
Q60: The investment function intersects the saving schedule
Q61: One of the primary determinants of planned