Compute the value of the simple spending multiplier if the marginal propensity to consume (MPC) is 0.80
a. 8
b. 5
c. 2
d. 0.80
b
Economics
You might also like to view...
According to Okun's law, if output grew 7% and full-employment output rose 5%, what would be the change in the unemployment rate?
A) -4 percentage points B) -1 percentage point C) 1 percentage point D) 4 percentage points
Economics
An improvement in technology will shift the production possibilities curve
A) to the left. B) along the curve. C) inward. D) to the right.
Economics
The simple quantity theory of money predicts that the larger the percentage change in the money supply, the larger the percentage change in Real GDP
Indicate whether the statement is true or false
Economics
If the cross-price elasticity of demand between two goods is -1.2, then the two goods are:
A. elastically demanded. B. inferior. C. complements. D. substitutes.
Economics