An expansionary fiscal policy shifts the aggregate demand curve to the right

The MPC is 0.90 and there are no income taxes or imports. If government expenditures on goods and services increases by $2.0 billion, after the multiplier effect works out, aggregate expenditure increases by

A) $2.22 billion. B) $2.0 billion. C) $10 billion. D) $20 billion. E) $1.8 billion.

Which of the following is the best definition of economics?

a. Economics is the study of how society chooses to allocate its scarce resources. b. Economics is the study of how to manage city and county government to generate the greatest good to its citizens. c. Economics is the study of how to manage corporations to generate the greatest return on shareholder investment. d. Economics is the study of how to track revenues and costs within a business.