If government spending increased by $50 billion and the MPC within the economy was 0.8, what would be the total impact on real GDP?
a. $62.5 billion decrease
b. $62.5 billion increase
c. $250 billion decrease
d. $250 billion increase
d
Economics
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Which of the following is an empirical issue?
A) The degree to which investment will decline as the interest rate rises. B) The assumptions of the simple quantity theory of money. C) The predictions of the simple quantity theory of money. D) The degree to which wages are flexible. E) a and d
Economics
If an individual has a comparative advantage in the production of a good, then this individual has the
A. greatest desire for the good. B. lowest opportunity cost in the production of the good. C. highest opportunity cost in the production of the good. D. same opportunity cost in the production of the good.
Economics