The basic reason for the multiplier effect is that, when you spend money,
a. another person receives income.
b. another person must pay for it.
c. your money balances are reduced.
d. your net worth decreases.
a
Economics
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Suppose government spending decreases by $100 billion and the marginal propensity to consume (MPC) is 0.8. Given this information, this decrease in government spending will cause a(n)
A) increase in equilibrium real GDP equal to $500 billion. B) increase in equilibrium real GDP equal to $800 billion. C) decrease in equilibrium real GDP equal to $800 billion. D) decrease in equilibrium real GDP equal to $500 billion.
Economics
Figure 17-10
Refer to . The amount of government revenue created by the tariff is
a.
B.
b.
E.
c.
D + F.
d.
B + D + E + F.
Economics