An economy has no imports and no taxes. The marginal propensity to save is 0.4. A? ______ increase in autonomous expenditure increases equilibrium expenditure by? $60 billion. The multiplier is? ______.
A. ?$38 ?billion; 24
B. ?$24 ?billion; 2.50
C. ?$96 ?billion; 0.63
D. ?$150 ?billion; 2.50
Answer: B. ?$24 ?billion; 2.50
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For a single-price monopoly, marginal revenue is ________ when demand is elastic and is ________ when demand is inelastic
A) negative; negative B) negative; positive C) positive; negative D) positive; positive
Suppose the US demand curve for gasoline shifts rightward, and the U.S. supply curve for gasoline remains unchanged. As a result, the price of gasoline increases by 9 percent, and the equilibrium quantity increases by 3 percent
Which of the following statements is true based on this information? A) The price elasticity of supply for gasoline is roughly 0.33. B) The price elasticity of supply for gasoline is roughly 3. C) The price elasticity of demand for gasoline is roughly 0.33. D) The price elasticity of demand for gasoline is roughly -3.
An indirect or inverse relationship between price and quantity demanded is
A) the market clearing price. B) a change in demand. C) a supply curve. D) a demand curve.
If heavy federal borrowing pushes up real interest rates in the United States, which of the following will most likely result?
a. an inflow of capital and an appreciation in the foreign exchange value of the dollar b. an outflow of capital and a depreciation in the foreign exchange value of the dollar c. an inflow of capital and a depreciation in the foreign exchange value of the dollar d. an outflow of capital and an appreciation in the foreign exchange value of the dollar