Answer the following statement(s) true (T) or false (F)
1. If the mpc is 0.8 and government spending increases by $10 billion, equilibrium Y will increase by $50 billion.
2. Decreasing taxes is an example of expansionary fiscal policy.
3. Most of the U.S. government debt is owed to foreign countries.
4. The HDI is an index of well-being.
5. The deficit is the sum of yearly government debts since 1776.
1. True
2. True
3. False
4. True
5. False
Economics
You might also like to view...
Higher prices lead to higher levels of real wealth
Indicate whether the statement is true or false
Economics
The _____ is the change in the purchasing power of assets that causes spending to change when the price level changes
a. purchasing power effect b. interest rate effect c. substitution effect d. income effect e. real-balance effect
Economics