To achieve a $500 billion increase in AD, if the MPC is 0.8, what increase in government purchases would be called for?
A) $625 billion
B) $500 billion
C) $400 billion
D) $100 billion
Correct Answer:
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Q33: Historically, the largest budget deficits and growing
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Q35: Contractionary fiscal policy consists of:
A)increased government purchases
Q36: The federal government buys $10 million worth
Q37: To achieve a $500 billion decrease in
Q39: If unemployment is the most significant problem
Q40: The government's fiscal policy is its plan
Q41: A $100 billion increase in government purchases
Q42: If MPC = 2/3, a decrease in
Q43: If government policy makers were worried about
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