In a simple, private economy, suppose that the MPC is .8 and investment rises by $20 million.At the new equilibrium, how much will saving have increased?
A) $8 million
B) $16 million
C) $20 million
D) $80 million
E) $100 million
Correct Answer:
Verified
Q185: In the real world, the actual multiplier
Q185: A decrease in autonomous consumption would have
Q188: If the multiplier is 4, a decrease
Q189: If an increase in investment of $100
Q191: Assume that the MPC is 0.80 and
Q192: According to Baumol and Blinder, the real-world
Q195: Movements along the consumption function are called
A)autonomous
Q196: For a given price level, a downward
Q198: A major Internet service provider decides to
Q200: If we observe that every increase in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents