If the marginal propensity to consume is 0.75 and government spending decreases by $2,000 billion, what is the change in GDP?
a. -$2,000 billion
b. -$8,000 billion
c. $2,000 billion
d. $1,500 billion
e. $8,000 billion
B
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Graphically, producer surplus is the:
A) difference between the demand curve and the price a consumer pays. B) difference between the supply curve and the price a consumer pays. C) difference between total cost and total revenue. D) product of price of a good and quantity sold.
Suppose a manufacturer of software develops a new computer program that sells for $50
The $50 cost includes $0.25 for the CD it is stored on, $5 for the labor of the company software programmers, and $1.75 for packaging materials and transportation costs. Value added by the software company is A) $49.75. B) $48.25. C) $48. D) $44.75. E) $43.
Labor unions, when successful, increase the total employment opportunities offered by a firm
a. True b. False Indicate whether the statement is true or false
Which of the following is not considered to be a shadow bank?
A. Money-market mutual funds B. Insurers C. Credit unions D. Brokerages