If $30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase by:
A) $30 billion.
B) $90 billion.
C) $100 billion.
D) $210 billion.
E) $300 billion.
Correct Answer:
Verified
Q41: If the economy spends 80 percent of
Q46: If the marginal propensity to consume (MPC)
Q53: The ratio of the change in GDP
Q59: In the Keynesian model, the larger the
Q81: Suppose that John Maestro, the owner of
Q82: In the aggregate expenditures model, assume that
Q85: The effect of an increase in investment
Q86: If the value of the marginal propensity
Q88: If the marginal propensity to consume (MPC)is
Q89: Suppose equilibrium real GDP is currently at
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