If an economy's MPC is 0.75 and the MPM is 0.25, then an increase in government spending of $2,000 will increase income by
A. $2,100.
B. $3,000.
C. $4,000.
D. $8,000.
Answer: C
You might also like to view...
The _____ shows all of the combinations of risk and return that leaves an investor equally well off from holding either a low-risk or a high-risk investment
a. indifference curve b. expectation c. standard deviation d. correlation coefficient
If there is complete crowding out, the change in Real GDP that results from a given change in autonomous spending will be
A) zero. B) greater than if there was incomplete crowding out. C) infinite. D) There is not enough information to answer the question.
The following table provides information about production at the XYZ-TV Company. Number of WorkersTVs ProducedMarginal ProductValue of Marginal Product00------13535$35,00026833$33,00039931$31,000412829$29,000515527$27,000 How many workers will XYZ-TV Company hire if the going wage for TV production workers is $30,000?
A. 2 B. 3 C. 1 D. 0
Discuss the types of policies that could be implemented to reduce European unemployment
What will be an ideal response?