Suppose Berylia's marginal propensity to consume is 0.8 . A recessionary gap of $200 exists in this economy. In order to close this gap, the government should increase its aggregate expenditures by _____

a. $40
b. $100
c. $200
d. $80

a

Economics

You might also like to view...

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

What will be an ideal response?

Economics

In basic terms, the current account is equal to

A) imports plus exports. B) savings minus consumption. C) exports minus imports. D) savings plus exports.

Economics