Suppose government purchases increase by $100 million in an economy, which leads to total output increasing by $500 million. The size of the multiplier is _____
Fill in the blank(s) with the appropriate word(s).
Answer: 5
You might also like to view...
A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid
A) coupon bond; discount B) discount bond; discount C) coupon bond; face D) discount bond; face
An easy money policy will cause the dollar to
A. depreciate and will increase American net exports. B. depreciate and will decrease American net exports. C. appreciate and will increase American net exports. D. appreciate and will decrease American net exports.
In the market for euros, a decrease in U.S. real interest rates tends to
A. decrease equilibrium price. B. increase excess supply. C. increase equilibrium price. D. cause no change in equilibrium price.
Singapore's health care system includes the following major elements, except:
A. Government mandates designed to promote competition on price and quality among health care providers B. High out-of-pocket costs to consumers C. Laws requiring people to save for future health expenditures D. A national health insurance plan for its citizens provided by the government