If the government purchases multiplier is 2.5 and government purchases increase by $10 billion but prices do not change, equilibrium expenditure...
What will be an ideal response?
increases by $25 billion
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The decision to give the politically appointed members of the Federal Reserve Board an automatic majority weakened the power of the private sector in the determination of monetary policy
Indicate whether the statement is true or false
A dollar of new excess reserves supplied to the banking system enables the system to create
What will be an ideal response?
Expansionary fiscal policy is so named because it:
A. necessarily expands the size of government. B. involves an expansion of the nation's money supply. C. is aimed at achieving greater price stability. D. is designed to expand real GDP.
A curve is plotted with y measured on the vertical axis and x measured on the horizontal axis. The slope of the curve equals
A) y divided by x. B) the change in y divided by x. C) the change in y divided by the change in x. D) y divided by the change in x.