If the MPC is 5/6 then the multiplier is
a. 6/5, so a $200 increase in government spending increases aggregate demand by $240.
b. 5, so a $200 increase in government spending increases aggregate supply by $1000.
c. 6, so a $200 increase in government spending increases aggregate demand by $1200.
d. 6/5, so a $200 increase in government spending increases aggregate supply by $1200.
c
Economics
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The median voter must have preferences that reflect those of all people in the community.
A. True B. False C. Uncertain
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One thing we can do to reduce trade imbalance in the United States would be to
A. push down the value of the dollar relative to other currencies. B. raise the prices of U.S. exports. C. raise consumption in the United States. D. lower savings in the United States.
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