Assume that taxes depend on income. The MPC is 0.75 and t is 0.2. If government spending increases by $10 billion, the equilibrium level of output will increase by
A. $16.7 billion.
B. $25 billion.
C. $50 billion.
D. $100 billion.
Answer: B
Economics
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The interest rate at which commercial banks lend to their customers with the best collateral is known as
a. prime rate. b. federal funds rate. c. discount rate. d. T-bill rate.
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How is state and local government funded and how does such funding differ from federal government funding?
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The simple quantity theory of money can be written as
A) P = MV/Q. B) MV = Q/P. C) PM = VQ. D) Q = PMV. E) all of the above
Economics