Suppose there is a $200 billion increase in government spending. We know that this increase in government spending will cause which of the following to occur?
A) equilibrium real GDP will increase by exactly $200 billion.
B) an increase in equilibrium real GDP and an increase in the multiplier.
C) an increase in equilibrium real GDP and a reduction in the multiplier.
D) an increase in equilibrium real GDP and no change in the multiplier.
D
Economics
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The relationship between consumer spending and income is known as the
A) rate of individual wealth. B) consumption function. C) rate of income. D) inflation rate.
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Which of the following is the BEST example of a monopsonist?
A) a household hiring a gardener B) a turnip farmer hiring seasonal help C) Hershey's Chocolate Factory in Hershey, PA D) Vinaka Coffee Shop in Carlsbad, CA
Economics