If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion, by how much will equilibrium output increase?
a. $350 billion
b. $150 billion
c. $200 billion
d. $266.7 billion
e. $800 billion
E
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When the rate of interest in the economy increases
A) real Gross Domestic Product (GDP) will increase. B) the market price of existing bonds will fall. C) the asset demand for money will increase. D) the transaction demand for money will increase.
The short-run break-even price is
A) the price at which a firm's total revenues exceed total costs. B) the point at which the firm's total costs are maximized. C) the price at which a firm's total revenues equal its total costs. D) the point at which the firm's implicit costs are maximized.
Sharing contracts in franchising the marginal benefit of the effort
a. Increases b. Decreases c. Do not change d. Eliminates
If the economy is currently in equilibrium at a level of GDP that is below potential GDP, what would move the economy back to potential GDP
What will be an ideal response?