If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by:
A. $2,500 billion.
B. $3,000 billion.
C. $4,000 billion.
D. $5,000 billion.
D. $5,000 billion.
Economics
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When there is a recessionary gap, capital and labor resources are:
A. decreasing in number. B. not being fully utilized. C. producing beyond their capacity. D. misallocated.
Economics
Aggregate demand is the total demand for intermediate goods and services in an entire economy
Indicate whether the statement is true or false
Economics
Unanticipated inflation is associated with cost increases which are not expected
Indicate whether the statement is true or false
Economics
Refer to the table above. If the opportunity cost of time increases to $60 per hour, renting which apartment will turn out to be the most expensive every month?
A) 1 B) 2 C) 3 D) 4
Economics