If an economy consumes 75 percent of any increase in disposable income, then an increase in autonomous investment of $1 billion could result in an increase in total spending of as much as
A) $1.0 billion..
B) $4.0 billion.
C) $5.0 billion.
D) $1.8 billion.
E) $6.0 billion.
B
You might also like to view...
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
President Franklin D. Roosevelt's first action regarding the run on banks was to
(a) close all banks. (b) increase the money supply. (c) prohibit bank foreclosures. (d) provide federal guarantees to depositors.
Why do many firms base incentive pay on group performance?
What will be an ideal response?
Ms. Rockefeller has an income of $200 million. If her income is in the form of wages and salary, then most of her income is taxed at __________ percent.
A. 15 B. 27 C. 30 D. 35