Government purchases are assumed to be autonomous because they are
A) independent of the price level
B) independent of the level of real GDP
C) independent of consumption
D) independent of investment
E) determined by the government independent of the desires of the households in the economy
Correct Answer:
Verified
Q1: Assume that initially G is $100 and
Q2: Exhibit 11-5 Q5: If the government increases its purchases by Q6: Which of the following assumptions is usually Q7: If the MPC = 0.6 and government Q8: When government purchases increase,the spending multiplier tells Q9: If the MPC equals 0.75 and G Q10: If government expenditures or taxes are assumed Q11: Exhibit 11-5 Q139: Equal increases in government purchases and in
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