Assume that autonomous expenditures in an economy decreased by $10 billion. What is the change in aggregate demand at a given price level if the MPC is 0.5?

a. increase by $50 billion
b. increase by $10 billion
c. decrease by $20 billion
d. decrease by $10 billion

c

Economics

You might also like to view...

One of the principles behind the concept of the circular flow is that

A) in every economic exchange, the seller receives exactly the same amount that the buyer spends. B) in every economic exchange, the seller receives less than the amount that the buyer spends. C) in exchange involving products, the seller receives less than the amount the buyer spends, but in resource markets the seller receives more than the buyer spends. D) the seller of goods receives exactly the same amount that the buyer spends, but the seller of resources receives less than the buyer spends.

Economics

The S&P 500 index includes the stocks of 500 largest companies in the U.S

a. True b. False Indicate whether the statement is true or false

Economics