If the marginal propensity to consume is 2/3 and autonomous consumption spending increases by $3 trillion, what is the change in GDP?
a. $3 trillion
b. $1 trillion
c. -$3 trillion
d. $9 trillion
e. -$9 trillion
D
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Nick owns a dog whose barking annoys his neighbor Jane. Suppose that the benefit of owning the dog is worth $700 to Nick, and that Jane bears a cost of $500 from the barking. Assume that the city has no ordinance against barking dogs. A possible private solution that would benefit both parties is for: a. There is no private solution that would improve this situation for both parties. b. Jane to
pay Nick $650 to get rid of the dog. c. Jane to pay Nick $800 to get rid of the dog. d. Nick to pay Jane $600 for her inconvenience.
If the nominal interest rate is 5 percent and the rate of inflation is 9 percent, then the real interest rate is
a. -4 percent. b. -0.44 percent. c. 4 percent. d. 14 percent.
Which of the following countries is the leader of foreign-held U.S. debt as of April 2010?
a. Russia b. China c. Brazil d. United Kingdom
When the demand curve shifts to the right and supply doesn't change:
A. quantity demanded will rise. B. equilibrium quantity will rise. C. equilibrium price will fall. D. supply will rise.