The total change in aggregate spending generated by increased government spending depends on the
A) Marginal propensity to consume.
B) Size of the recessionary GDP gap.
C) AD shortfall.
D) AD excess.
Correct Answer:
Verified
Q23: The balanced budget multiplier says that
A)An increase
Q24: Which of the following is the best
Q25: Which of the following is true when
Q26: If the government purchases multiplier is 4
Q27: Assume the MPC is 0.75.To eliminate an
Q29: Which of the following formulas is used
Q30: A tax cut
A)Directly decreases the disposable income
Q31: If the MPC equals 0.80,a $200 billion
Q32: The "naïve" Keynesian model is unrealistic because
Q33: A tax cut has a smaller impact
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