If government spending increased by $50 billion and the MPC within the economy was 0.8, what would be the total impact on real GDP?
A) $62.5 billion decrease
B) $62.5 billion increase
C) $250 billion decrease
D) $250 billion increase
Correct Answer:
Verified
Q37: Marginal propensity to consume is equal to
Q38: Exhibit 23-1 Q39: Bill's disposable income goes from $100,000 in Q40: Which of the following is not an Q41: Keynes believed that: Q43: Which of the following is not true Q44: The slope of the consumption function is Q45: When resources are at full capacity, output Q46: A change in taxes of a given Q47: Unplanned inventory decreases:
A)discretionary fiscal policy was needed
A)tend to result in an
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