The effect throughout the entire economy of one firm's increase in spending will be
A) less than the recipient's income.
B) equal to the recipient's income.
C) greater than the recipient's spending.
D) offset by another individual's saving.
Correct Answer:
Verified
Q171: The economic impact of a change in
Q172: The multiplier principle is built on the
Q173: Assume that the MPC is 0.85 and
Q174: The basic reason for the multiplier effect
Q175: An increase in investment spending will be
Q177: The actual multiplier for the U.S.economy is
Q178: If the government increases defense spending by
Q179: If businesses spend an additional $150 billion
Q180: If the MPC is 0.67, then the
Q181: For a given price level, an upward
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