If the MPC is 0.6, then a 50-unit rise in taxes and a 50-unit rise in government spending will shift the IS curve
a. to the right by 50 units.
b. to the right by 75 units.
c. to the left by 125 units.
d. to the left by 75 units.
A
Economics
You might also like to view...
In the short run, which of the following is FALSE about the shutdown point?
A) Total revenue is equal to total fixed cost. B) Total revenue is equal to total variable cost. C) Product price is equal to the minimum average variable cost. D) Price multiplied by quantity must be equal to minimum average variable cost multiplied by quantity.
Economics
Quotas and tariffs discourage foreign governments from retaliating with quotas and tariffs of their own
a. True b. False
Economics