If MPC = 2/3, a decrease in government purchases of $10 billion will ultimately lead to:
a. a $30 billion increase in aggregate demand.
b. a $10 billion increase in aggregate demand.
c. a $10 billion decrease in aggregate demand.
d. a $30 billion decrease in aggregate demand.
d
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By fixing its exchange rate, China is most likely
A) achieving a low inflation rate by anchoring to the U.S. inflation rate. B) keeping its export prices low. C) making it easier to compete in world markets. D) Both B and C.
You are considering buying a store. The storeowner gives you an estimate of the net profits of the store on a typical day. The owner has most likely given you the figures for the day when
a. Sales are low, costs are high b. Sales are very close to costs c. Sales are high, costs are low d. All of the above
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect the world:
A. supply curve to shift more to the right than the world demand curve as a result. B. supply curve to shift more to the left than the world demand curve as a result. C. demand curve to shift more to the right than the world supply curve as a result. D. demand curve to shift more to the left than the world supply curve as a result.
The change in total cost that results from the production of one additional unit is called:
A. marginal revenue. B. average variable cost. C. marginal cost. D. average total cost.