A $100 billion decrease in government purchases would:
a. increase AD by $500 billion if MPC = 0.8.
b. decrease AD by $300 billion if MPC = 2/3.
c. increase AD by $200 billion if MPC = 0.5.
d. decrease AD by $40 billion if MPC = 0.4.
b
Economics
You might also like to view...
If price is above average total costs, the firm
A) is earning positive profits. B) is earning negative profits. C) is making a normal rate of return on its capital investment. D) may be earning a positive or negative profit depending upon costs.
Economics
Dave, a U.S. citizen buys a bicycle manufactured in China. Dave's purchase is
a. both a U.S. and Chinese export. b. both a U.S. and Chinese import. c. a U.S. import and a Chinese export. d. a U.S. export and a Chinese import.
Economics