If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:
A. 5.
B. 0.20.
C. 0.80.
D. 10.
Answer: A
You might also like to view...
Firm A owns produces both toothpaste and toothbrushes. In order to increase profits the firm must
a. Increase prices for both toothbrushes and toothpaste b. Decrease prices for both toothbrushes and toothpaste c. Increase prices on toothbrushes and increase the price on toothpaste d. Increase prices on toothbrushes but keep the price on toothpaste constant
The declared purpose of antitrust policy is to promote competition, yet some would say it actually may prevent competition. Explain the two sides of the debate.
What will be an ideal response?
Which statement is true?
A. Most poor people are black. B. Most poor people are Hispanic. C. About one child in six lives in poverty. D. Old people have a higher poverty rate than children.
Aggregate demand is the total demand for intermediate goods and services in an entire economy.
Answer the following statement true (T) or false (F)