Given the MPS = 0.40, with no government and no foreign trade, a $10 billion increase in investment will eventually result in an increase in
A. Total spending by $25 billion.
B. Consumption by $40 billion.
C. Total spending by $2.5 billion.
D. Total spending by $15 billion.
Answer: A
Economics
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If the Chinese government sets a price ceiling below the equilibrium price, the result will be I. an increase in the quantity demanded. II. a decrease in the quantity supplied. III. a shortage
A) I only B) I and II only C) III only D) I, II, and III
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Which of the following shifts aggregate demand to the right?
a. The price level rises. b. The price level falls. c. The money supply falls. d. None of the above is correct.
Economics