If the spending multiplier is greater than 1.0, a $200 billion increase in autonomous investment will cause:
a. equilibrium investment to increase by less than $200 billion
b. equilibrium investment to decrease by more than $200 billion.
c. equilibrium real GDP demanded to increase by more than $200 billion.
d. equilibrium real GDP demanded to decrease by less than $200 billion.
e. equilibrium saving to decrease by more than $200 billion.
c
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The table above gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive
If the demand for labor decreases by 200 hours per day, the equilibrium wage rate falls to ________ an hour and the quantity of labor employed ________ hours per day. A) $10; remains at 400 B) $10; decreases to 300 C) $20; increases to 400 D) $5; remains at 200
For a person who consumes only steak and lobster, the slope of the budget line is called the marginal rate of substitution between steak and lobster
Indicate whether the statement is true or false
All of the following are reasons for the downward-sloping aggregate demand curve except
A) as the price level decreases, the quantity demanded of real GDP decreases because goods and services are more expensive. B) as the price level increases, the real value of household wealth declines, reducing consumption. C) a higher price level increases the demand for money, causing an increase in the interest rate which reduces spending on investment goods and consumer durables. D) if the price level rises in a country relative to price levels in other countries, net exports will decrease in the original country.
The extra benefit associated with producing or consuming the next unit is called the:
A. revenue product. B. spillover. C. marginal benefit. D. economic benefit.