Suppose government spending decreases by $100 billion and the marginal propensity to consume (MPC) is 0.8. Given this information, this decrease in government spending will cause a(n)
A) increase in equilibrium real GDP equal to $500 billion.
B) increase in equilibrium real GDP equal to $800 billion.
C) decrease in equilibrium real GDP equal to $800 billion.
D) decrease in equilibrium real GDP equal to $500 billion.
D
Economics
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According to the Application, as new products are constantly invented and introduced on the market,
A) the bias in the CPI can be large. B) the bias in the CPI will eventually disappear. C) the bias in the CPI will remain virtually unchanged. D) the bias in the CPI tends to become smaller.
Economics
The value of assets and the value of liabilities are equal for a financially healthy bank
a. True b. False Indicate whether the statement is true or false
Economics