A $300 billion increase in government spending increases Real GDP by $1,800 billion. Assuming a constant price level, what does the government spending multiplier equal?
A) 0.17
B) 120
C) 6
D) 60
E) ?0.83
C
Economics
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According to the figure above, which point or points correspond to full employment?
A) only point a B) only point b C) only point c D) points a and b E) points a, b, and c
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The interest rate at which banks borrow excess reserves from each other is known as the
a. prime rate. b. federal funds rate. c. discount rate. d. T-bill rate.
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When the Fed _____ bonds, the money supply _____.
A. buys; increases B. buys; decreases C. sells; increases D. sells; is not affected
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Someone in Germany has just ordered a U.S. car to be exported to Germany. In the U.S. balance of payments, this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
Economics