In Country Z, the government simultaneously increases its expenditures by $25 billion and increases taxes by $25 billion. If the MPS is equal to 0.2, the government's action ________ real GDP by ________
A) increases; $125 billion
B) increases; $25 billion
C) increases; $100 billion
D) has no effect on; $0
Ans: B) increases; $25 billion
Economics
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The federal corporate income tax is
A) unfair. B) progressive. C) proportional. D) regressive.
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Refer to Figure 8.1. At the profit-maximizing level of output,
A) AVC is minimized. B) ATC is minimized. C) MC is minimized. D) total cost is minimized. E) no costs are minimized.
Economics