Assume that the MPC is .75, and investment spending rises by $25 billion. How much will real GDP change?
a. $25 billion
b. $75 billion
c. $100 billion
d. $175 billion
c
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If a monopolist is maximizing profits, then it is producing an amount of output so that
A) MR = ATC. B) MC = AVC. C) MR = TC. D) MR = MC.
When a developing country relies on export promotion,
a. it concentrates on producing for its domestic market b. it builds its technological and educational base and then can make more complex products for export c. domestic producers have sufficient protection that they can afford to become inefficient d. its government must intervene more in markets e. None of the answers is correct
Suppose that a U.S. dollar buys more gold in Australia than it buys in Russia. What does purchasing-power parity imply should happen?
Tight monetary policy ________ interest rates which ________ the demand for a currency and ________ the fundamental value of the exchange rate.
A. increases; increases; decreases B. increases; decreases; increases C. decreases; decreases; decreases D. increases; increases; increases