Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = .6, how much will the change in investment increase aggregate demand?
A. $12 billion.
B. $20 billion.
C. $33.3 billion.
D. $50 billion.
D. $50 billion.
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Computer processors and memory costs have decreased dramatically in the past 25 years. As a result, in the computer market, we have seen
A. an increase in demand. B. an increase in supply. C. a decrease in demand. D. a decrease in supply.
When organizing a collective action, it is generally true that the larger the group the:
A. lower the costs and benefits per person. B. higher the costs and lower the benefits per person. C. lower the costs and higher the benefits per person. D. higher the costs and benefits per person.
Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause
A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity.
The Fed sets the interest that borrowers pay on loans from
a. the discount window and the term auction facility b. the discount window but not the term auction facility c. the term auction facility but not the discount window d. neither the discount window nor the term auction facility