If the marginal propensity to consume in a country is 0.6, then a $5,000 increase in transfer payments will lead to a _____ in real GDP
a. $8,000 increase
b. $2,500 decrease
c. $5,000 decrease
d. $7,500 increase
d
You might also like to view...
Frictional unemployment arises when
A) unskilled or low-skilled workers find it difficult to obtain desirable, long-term jobs. B) labor must be reallocated from industries that are shrinking to areas that are growing. C) workers must search for suitable jobs and firms must search for suitable workers. D) output and employment are below full-employment levels.
If a company offers a discounted price to college students, the legality of the practice will be evaluated under Section ________ of the Clayton Act.
A) 2 B) 3 C) 7 D) 8
If Mattie's threatens to always fight, what would Irene's best response be?
a. Enter b. Not enter c. Run d. All of the above
In the above figure, suppose the economy is in short-run equilibrium at point D. Which of the following is the best policy option for the Fed?
A. open market purchase of government securities B. Increase the required reserve ratio. C. Increase taxes. D. Increase government spending.