Solved

If the MPC Is 0

Question 125

Multiple Choice

If the MPC is 0.9, and the government cuts spending by $200b, the overall effect on GDP will be:

A) a decrease of $2,000b.
B) an increase of $2,000b.
C) a decrease of $1,800b.
D) an increase of $180b.

Related Questions

Q120: If tastes for foreign goods and services

Q121: The real exchange rate generally has _

Q122: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6625/.jpg" alt=" Using Figure 2

Q123: The multiplier effect occurs when:<br>A) spending by

Q124: If transfer payments increase then we would

Q126: What type of relationship does the real

Q127: A key result of the equilibrium aggregate

Q128: Which of the following is a determinant

Q129: Which of the following could be a

Q130: If the MPC is 0.6, and the