Assume that MPS is 0.4. If spending increases by $8 billion, then real GDP will increase by:
A. $8 billion
B. $13.3 billion
C. $15 billion
D. $20 billion
D. $20 billion
Economics
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How does the decreasing use of DVD players affect the market for prerecorded DVDs?
A) The demand curve for prerecorded DVDs shifts to the left. B) The quantity of prerecorded DVDs demanded decreases. C) The quantity of prerecorded DVDs demanded increases. D) The demand curve for prerecorded DVDs shifts to the right.
Economics
What is the multiplier? If MPC =0.75, what is the value of the multiplier in the simple model of the economy?
What will be an ideal response?
Economics