Assume that the MPC is 0.75, and investment spending rises by $25 billion. How much will real GDP change?
A. $25 billion
B. $75 billion
C. $100 billion
D. $175 billion
Answer: C
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The addition to total physical product when one more unit of capital (or loanable funds) is used in production is called
a. marginal physical product of capital b. marginal revenue product of capital c. marginal use of loanable funds d. interest e. depreciation
In the early 1960s, the Kennedy administration made considerable use of
a. fiscal policy to stimulate the economy. b. fiscal policy to slow down the economy. c. monetary policy to stimulate the economy. d. monetary policy to slow down the economy.
Copayments and deductibles in insurance policies increase moral hazard.
Answer the following statement true (T) or false (F)
Using the above figure, the price facing the perfectly competitive firm in the long run will be
A. P1. B. P2. C. P3. D. P4.