Assume the marginal propensity to consume is 0.96 . Firms become pessimistic and decrease investment spending by $100 billion. Other things equal, real GDP will:
a. decrease by $100 billion.
b. not change.
c. decrease by $96 billion.
d. decrease by $2,500 billion.
d
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Discuss the advantages of the Herfindahl-Hirschman Index compared with the four-firm concentration ratio.
What will be an ideal response?
Money supply M1 does not include the currency held by
A. households in their wallets or purses. B. business firms. C. state and local governments. D. commercial banks.
Refer to the scenario above. Which of the following is likely to be true if the game is played only once?
A) The equilibrium outcome will be a Nash. B) The equilibrium outcome will be socially inefficient. C) No unique equilibrium will occur. D) Multiple Nash equilibria will occur.
Which statement is true?
A. William Julius Wilson and Charles Murray are basically in agreement about the causes of the formation of a permanent underclass. B. The permanent underclass has more white members than black members. C. There is very little evidence to show that there is actually a permanent underclass. D. There are more poor whites than poor blacks in the United States.