Assume that the MPC is 0.75 and that the price level is "sticky". If the Federal Reserve increases the money supply and investment spending increases by $8 billion, then aggregate demand is likely to:
A. Increase by $6 billion
B. Increase by $8 billion
C. Increase by $32 billion
D. Decrease by $8 billion
C. Increase by $32 billion
Economics
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Technology has played a key role in changing the structure of the economy, which has increased the rewards for additional education and training. Greater access to education and training programs for all workers should therefore
A) play an important role in reducing income inequality. B) have a net effect of increasing income inequality. C) eliminate all income inequality. D) have little effect on the overall state of income inequality.
Economics
Using the data in the above table, the labor force participation rate is
A) 60.8 percent. B) 56 percent. C) 4.8 percent. D) 61.6 percent. E) 64.4 percent.
Economics