What is the government purchases multiplier if the tax rate is 0.1 and the marginal propensity to consume is 0.9? Assume the economy is closed
A) 5.3 B) 10 C) 11.1 D) 100
A
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A. only have one outcome possible. B. with noncooperative equilibriums are always negative-negative outcomes. C. may have several stable outcomes. D. must have a dominant strategy present to reach a stable equilibrium.
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In Figure 4.2, at quantities at Q1:
A. price and total revenue are unrelated. B. total revenue is maximized. C. price elasticity equals 1. D. All of these
Suppose there is a simultaneous fiscal expansion and monetary expansion. We know with certainty that
A) output will increase. B) output will decrease. C) the interest rate will increase. D) the interest rate will decrease. E) both output and the interest rate will increase.