Compared to a country with an MPS of 0.167, a country with an MPS of 0.5 would have to change government expenditures by ________ as much to have the same impact on real GDP.
A. twice
B. three times
C. four times
D. five times
Answer: B
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The fact that price subsidies reduce economic surplus implies that:
A. price subsidies help the rich but not the poor. B. we can find an alternative policy that will make both the rich and the poor better off. C. price subsidies are not effective at lowering prices. D. the quantity bought and sold in the market will fall.
Which of the following events would produce an upward shift in the consumption function, other things being equal?
a. An increase in consumer wealth. b. A decrease in consumer wealth. c. A decrease in autonomous consumption. d. Both b and c.
What does it mean to say there is a separation of ownership from control in large corporations?
What will be an ideal response?
The income and substitution effects move in ________ for lenders and in ________ for borrowers
A) the same direction; the same direction B) the same direction; opposite directions C) opposite directions; the same direction D) opposite directions; opposite directions