If the marginal propensity to consume (MPC) is 0.8, the spending multiplier will be
A) 0.2.
B) 1.25.
C) 4.0.
D) 5.0.
D
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The total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000. Assume that the country produces only this good and each unit of the good sells for $10
What is the gross domestic product of the country? A) $1,000,000 B) $250,000 C) $150,000 D) $1,150,000
Suppose the following information is known about a market:
1. Sellers will not sell at all below a price of $2. 2. At a price of $10, any given seller will sell 10 units. 3. There are 100 identical sellers in the market. Assuming a linear supply curve, use this information to derive the market supply curve.
The differences that people settle by voting are most likely to include:
a. issues that affect few people. b. decisions that need to be taken at a short notice. c. decisions that are divisible. d. public goods.
Supply-side economists believe that:
A. Government regulation is necessary to ensure the correct mix of output. B. A decrease in regulation will shift the aggregate supply curve to the right. C. A decrease in regulation will allow producers to abuse consumers. D. Government regulation encourages long-run economic growth.