If the marginal propensity to consume (MPC) is 0.75 and if policy makers wish to increase real GDP by $300 million to fight a recession, then by how much would taxes have to change?
A. -$30 million
B. -$50 million
C. -100 million
D. -300 million
Answer: C
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The marginal product of labor is always ________ and it ________ as the labor stock increases
A) positive; increases B) positive; decreases C) negative; increases D) negative; decreases
Efficient production means producing
a. less output when costs are high and more output when costs are low b. at the lowest possible cost regardless of the quantity of output c. at any point on the production possibilities curve d. no more than what society needs e. in excess of what society needs
Which of the following is consistent with the classical theory of growth?
A) permanent increases in real wages B) permanent growth in productivity C) rapid population growth in poor countries D) permanent increases in living standards
Net taxes equal the amount that the:
A. business sector pays the government minus the amount the private sector pays the government. B. private sector pays the government minus the amount the private sector receives from the government. C. government pays the private sector plus the amount of private sector pays the government. D. government pays the private sector minus the amount the private sector pays the government.