If the MPC is 0.4,more than half of the effect of an increase in government purchases on aggregate demand will come from increased consumption.
Correct Answer:
Verified
Q13: The larger the marginal propensity to consume,
Q99: If Canadian budget deficits (which require the
Q100: During a recession,what automatically happens to government
Q101: If the MPC is 2/3,2/3 of the
Q102: Once Statistics Canada identifies an economic downturn,the
Q103: Fiscal policy is a plan for taxing
Q105: Since 1970,the level of government transfer payments
Q106: According to the recognition lag,how long might
Q107: What impact does a smaller crowding-out effect
Q109: What does the impact lag refer to?
A)the
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