If the MPS equals 0.25 and the MPI is 0.15, then an initial change in investment spending of $250 million will result in a total change in equilibrium real GDP of $625 million

What causes inflation?

A. An increase in nominal GDP. B. An increase in real interest rates. C. An increase in the money supply. D. An increase in real GDP.

When a firm's marginal productivity of an input eventually declines as the quantity of input increases, then the production is experiencing

a. Diminishing returns to scale b. Diminishing marginal product c. Increasing returns to scale d. Increasing marginal product