If the MPC is .70 and investment increases by $3 billion, the equilibrium GDP will:
A. increase by $10 billion.
B. increase by $2.10 billion.
C. decrease by $4.29 billion.
D. increase by $4.29 billion.
A. increase by $10 billion.
Economics
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How do economists sometimes measure physical capital in a country?
(A) The amount of roads and bridges per capita. (B) The number of computers that are available to businesses. (C) The amount of savings that the citizens have in the bank. (D) The number of telephones it has in relation to its population.
Economics
As interest rates rise, the expected absolute return of money ________, money's expected return relative to bonds ________
A) does not change; decrease B) rises; decrease C) does not change; increase D) falls; decrease
Economics