In an economy, the government wants to increase aggregate demand by $50 billion at each price level to increase real GDP and reduce unemployment. If the MPS is 0.4, then it could increase government spending by:

A. $10 billion

B. $20 billion

C. $31.25 billion

D. $40.50 billion

B. $20 billion

Economics

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Explain the term "labor hoarding."

What will be an ideal response?

Economics

If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is

A) proportional. B) unfair. C) progressive. D) regressive.

Economics