The King of Rococo hires you as an economic consultant. He is concerned that the output level in Rococo is too high and that this will cause prices to rise. He feels that it is necessary to reduce output by $100 billion. He tells you that the MPC in Rococo is 0.9. Which of the following would be the best advice to give to the King of Rococo?
A. Reduce government spending in Rococo by $10 billion.
B. Increase taxes in Rococo by $100 billion.
C. Reduce government spending in Rococo by $90 billion.
D. Increase government spending in Rococo by $100 billion.
Answer: A
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According to your textbook authors, laws restricting competitors
A) restrict competition. B) reduce greed. C) promote economic fairness. D) improve the alternatives available to customers.
Which of the following statements is (are) correct? According to United States data,
a. the rate of growth in output and labor productivity has slowed over the past two decades. b. growth in the labor force has steadily increased since 1960. c. the growth rates of capital has slowly increased since the 1960s. d. the rate of growth in output and labor productivity was slower during the 1990s. e. none of the above.