In an article regarding Bangladesh's economy, the author suggests that the government ..."[g]ive double tax breaks on investment dollars. Give a tax break to R&D [research and development]. Give a tax break on donations to educational institutions." www.groundreport.com, March 24, 2008
Suppose the multiplier in Bangladesh is 2. If the government enacts the proposed policies and ________, aggregate expenditure ________ in the short run.
A) induced expenditure increases by $5 billion; increases by $10 billion.
B) autonomous expenditure decreases by $10; decreases by $5 billion.
C) equilibrium expenditure increases by $8 billion; increases by $16 billion.
D) autonomous expenditure increases by $10 billion; increases by $20 billion.
Correct Answer:
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Q360: The size of the multiplier
A) is unaffected
Q361: The multiplier is 5.0 and autonomous expenditure
Q362: In an article regarding Bangladesh's economy, the
Q363: After an increase in autonomous spending, in
Q364: In the long run, the multiplier
A) is
Q366: Suppose the consumption function is given by
Q367: In an article regarding Bangladesh's economy, the
Q368: Suppose the consumption function is given by
Q369: The multiplier is 2.5 and the SAS
Q370: Mauritius, an island off the coast of
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