If a $100 billion decrease in investment spending causes income to decline by $100 billion the first round of the multiplier process and by $75 billion in the second round, income will eventually decline by:
A. $200 billion.
B. $300 billion.
C. $400 billion.
D. $500 billion.
C. $400 billion.
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Which of the following is not a feature of the steady state in Solow's exogenous growth model?
A) The capital/output ratio is steady. B) Capital grows continuously. C) Consumption per worker is steady. D) Total saving is steady.
Why don't we see firms tie-in the sales of fish filets with the sales of pencils?
A) because the demands for these two goods are positively correlated B) because the demands for these two goods are negatively correlated C) because the demands for these two goods are independent D) It violates the Clean Food Act of 1908.
A depreciation of the U.S. dollar will benefit the _____. a. countries exporting to the U.S
b. Australian firms selling in the U.S. c. U.S firms selling in Europe d. Japanese investors who have invested money in the U.S.
Suppose that the market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 ? 5W. The government has passed a law that subsidizes wages by $1 per hour. The equilibrium wage and quantity of labor with the subsidy is:
A. $2.5 and 12.5 workers, respectively. B. $3.5 and 17.5 workers, respectively. C. $4 and 15 workers, respectively. D. $3.5 and 10 workers, respectively.