In 1963, government economists assumed that the MPC for the United States was approximately 0.90. If taxes were cut by $9 billion, then consumer expenditures would initially be expected to
A. decrease by $9.0 billion.
B. increase by $9.0 billion.
C. decrease by $8.1 billion.
D. increase by $8.1 billion.
Answer: D
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A person is betting a coin will come up heads or tails. The coin always lands on one of these two outcomes. This person can bet to
A) eliminate only the systematic risk. B) eliminate only the random risk. C) eliminate all risk. D) All of the above.
For profit-maximizing monopolies, explain why the boundaries on the Lerner Index are 0 and 1
What will be an ideal response?
Toby sells wheat in a perfectly competitive market. This month Toby receives a higher price for a bushel of wheat than he did last month. Which of the following might explain this?
A. The market demand for wheat increased. B. The market demand for wheat decreased. C. Firms entered the market. D. Toby's costs have decreased.
In general, the relationship between democracy and economic growth as demonstrated by the high-growth Asian economies is that
A) democratic nations grow faster than undemocratic nations. B) democratic nations grow slower than undemocratic nations. C) there does not seem to be a relationship between democracy and economic growth. D) democracies are much more variable in their rates of growth than undemocratic nations.