If the MPC in an economy is 0.9, the government could shift the aggregate demand curve rightward by $40 billion by
A. increasing government purchases by $4 billion.
B. decreasing taxes by $4 billion.
C. increasing taxes by $4 billion.
D. increasing government purchases by $40 billion.
Answer: A
You might also like to view...
Which of the following would not be a Pareto superior move?
a. A market exchange. b. A group that unanimously decides to undertake an activity. c. A group that decides by majority rule to undertake an activity. d. A contingent contract for a group to undertake an activity at some time in the future.
The unique alphabetic name that identifies a listed stock is known as the:
a. stock's nickname. b. stock's alpha sign. c. ticker symbol. d. alternative name. e. fixed call number.
“Pollution should be completely eliminated.” Evaluate. Support your answer using MB and MC analysis
Please provide the best answer for the statement.
Which of the following statements is TRUE?
A. During periods of inflation, nominal GDP increases more rapidly than does real GDP. B. Real values are expressed in current dollars. C. Increases in real GDP are evidence that the distribution of wealth is becoming more equal. D. Nominal values are expressed in constant dollars.