A change in government purchases shifts the aggregate demand curve by an amount equal to the
A) change in consumption X marginal propensity to consume.
B) change in government purchases X money multiplier.
C) change in government purchases X spending multiplier.
D) change in the spending multiplier X change in government purchases.
Ans: C) change in government purchases X spending multiplier.
You might also like to view...
A monopsony will hire another worker if the
A) marginal cost of labor exceeds the value of marginal product. B) marginal cost of labor is less than the value of marginal product. C) marginal cost of labor is less than the wage rate. D) wage rate exceeds the value of marginal product.
A fixed exchange rate system where central banks buy and sell gold to keep exchange rates at a given level is called the:
A) fixed standard. B) flexible standard. C) fiat standard. D) gold standard.