If the MPC is 0.6 and if government purchases and net taxes both increase by $20 billion, by how much will equilibrium output change?
a. It will increase by $80 billion.
b. It will increase by $20 billion.
c. It will not change because the changes in government purchases and net taxes will cancel each other out.
d. It will decrease by $20 billion.
e. It will decrease by $80 billion.
B
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The statement that "demand increases" means that there is a
A) movement to the right along a demand curve. B) movement to the left along a demand curve. C) rightward shift of the demand curve. D) leftward shift of the demand curve.
Refer to the above table. What is AVC at an output of 2 units?
A. $61 B. $16 C. $7 D. $45
Total expenditures can be written as C + I + G + (X ? IM)
a. True b. False Indicate whether the statement is true or false
Banks have historically used the discount window:
A. often, until the financial crisis of 2008. B. sparingly during recessions, and often during booms. C. sparingly, until the financial crisis of 2008. D. often during recessions, and sparingly during booms.