A decrease in investment leads to ________ in aggregate demand and ________ in real GDP
A) no change; a decrease
B) a decrease; an increase
C) an increase; an increase
D) a decrease; a decrease
E) an increase; a decrease
D
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The additional utility gained from consuming an additional unit of a good is called:
A. marginal utility. B. total utility. C. costly utility. D. a util.
Assume that the MPC is 0.75 and that the price level is "sticky". If the Federal Reserve increases the money supply and investment spending increases by $8 billion, then aggregate demand is likely to:
A. Increase by $6 billion B. Increase by $8 billion C. Increase by $32 billion D. Decrease by $8 billion
Which of the following equations defines the multiplier?
A. 1 - (c ÷ YD). B. 1 - b C. 1 ÷ APS. D. 1 ÷ (1 - MPC).
The above table has information about the hypothetical economy of Robotica. Based on the data, the size of M2 is
A) $2,600 billion. B) $2,610 billion. C) $610 billion. D) $600 billion. E) $1,710 billion.