In a closed economy, if Y, C, and T remained the same, a decrease in G would
a. reduce private saving and public saving.
b. increase private saving but not public saving.
c. increase public saving but not private saving.
d. increase neither private nor public saving.
c
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Suppose that the marginal propensity to consume is 0.75
a. If the government decreases spending by $500 billion, what is the change in output? b. If the government decreases taxes by $500 billion, what is the change in output? c. If the government decreases transfer payments by $500 billion, what is the change in output? d. If the government decreases spending by $500 billion and at the same time decreases taxes by $500 billion, what is the change in output?
The more firms that are attracted to an industry, the greater will be the quantity of product supplied at any given price
a. True b. False Indicate whether the statement is true or false