If the government collects $10,000 in tax revenue and turns around and spends $10,000 to build a new road, and the MPC is 0.5, national income

a. is unchanged
b. increases by $5,000
c. increases by $10,000
d. increases by $15,000
e. increases by $20,000

C

Economics

You might also like to view...

Ordinary Least Squares Regression analysis attempts to

A) maximize the distance of each point from a regression line. B) select a line that fits the data well. C) maximize the residual. D) change a multivariate problem into a single dimension.

Economics

The airline industry is an example of a(n) ________ industry.

A. monopolistic B. perfectly competitive C. oligopolistic D. monopolistically competitive

Economics