Multiple Choice
Equal increases in government purchases and taxes will
A) increase the equilibrium GDP, and the size of that increase varies directly with the size of the MPC.
B) increase the equilibrium GDP, and the size of that increase is independent of the size of the MPC.
C) increase the equilibrium GDP, and the size of that increase varies inversely with the size of the MPC.
D) decrease the equilibrium GDP, and the size of that decrease is independent of the size of the MPC.
Correct Answer:
Verified
Correct Answer:
Verified
Q50: Exports have the same effect on the
Q123: In a closed private economy, an unplanned
Q124: A decrease in taxes will have a
Q125: In the private closed economy, equilibrium GDP
Q125: In the aggregate expenditures model, it is
Q126: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2595/.jpg" alt=" Refer to the
Q129: If the economy has a recessionary expenditure
Q130: A personal tax cut of $50 billion
Q131: In the United States from 1929 to
Q132: A tax cut will have a greater