Solved

If MPC = 0

Question 101

Multiple Choice

If MPC = 0.8, a $200 billion increase in government purchases would have what size effect on the "first round" of induced added consumption?

A) $80 billion
B) $160 billion
C) $200 billion
D) $800 billion

Related Questions

Q96: A policy of a tax cut combined

Q97: If unemployment is the most significant problem

Q98: Which of the following helps explain how

Q99: The time span between recognition of the

Q100: Expansionary fiscal policy consists of:<br>A)increased government purchases

Q102: The larger the marginal propensity to consume,

Q103: A larger crowding-out effect:<br>A)increases the magnitude of

Q104: According to the supply-side view of fiscal

Q105: A $100 billion increase in government purchases

Q106: Which of the following statements is not