If the marginal propensity to consume in an economy is .8, net exports are zero, and government spending is $33 billion at each level of real GDP, the slope of the economy's aggregate expenditures schedule will be:
A. .8.
B. .2.
C. 5.
D. .125.
A. .8.
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Bank ________ is/are listed on the liability side of the bank's balance sheet
A) reserves B) capital C) securities D) cash items
Which of the following is a valid criticism of unregulated monopoly?
a. Monopoly limits the options available to consumers. b. Relative to a competitive market, a monopolist generally will produce too great an output. c. Profit-maximizing monopolists will fail to produce at the lowest possible cost. d. A monopoly's output will often be more than if the market were competitive.
When a regulator is concerned about pleasing different groups in order to keep employed, this is known as the
A) share-the-gains, share-the-pains theory. B) regulatory hypothesis. C) capture hypothesis. D) creative theory.
Suppose $100 invested next year results in a return of b two years from now. If individuals do not discount the future but have a beta of 0.5 (in the beta-delta model), for what range of b will an individual plan to make the investment but then reverse course next year?
What will be an ideal response?