If MPC = 0.75, a $40 billion decrease in government purchases would have what size effect on the "first round" of induced added consumption?
A) $30 billion
B) $40 billion
C) $120 billion
D) $160 billion
Correct Answer:
Verified
Q53: If the government decides to spend an
Q54: If the marginal propensity to consume is
Q55: If government increases its purchases by $20
Q56: If the MPC = 3/4, an increase
Q57: If MPC = 0.75, a $40 billion
Q59: Which of the following is true?
A)The tax
Q60: If MPC = 0.8, a $200 billion
Q61: Other things equal, an increase in government
Q62: The greater the MPC:
A)the greater the fraction
Q63: The primary benefit of the automatic stabilizers
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