An increase in government spending by $100 would, if the MPC = 0.90, result in an increase in real GDP by:
A. $1,000.
B. $9,000.
C. $900.
D. $190.
Answer: A
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There are two major Internet service providers in Eduland. One company has a market share of 60% and the other firm has a market share of 40%. The Herfindahl-Hirschman Index for this industry is ________
A) 100,000 B) 1,200 C) 5,200 D) 100
Which of the following occurrences would NOT shift the demand curve for U.S. dollars in the foreign exchange market?
A) an increase in the U.S. exchange rate B) an increase in the expected future U.S. exchange rate C) an increase in U.S. interest rates D) an increase in foreign interest rates
If your disposable personal income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000 . your marginal propensity to consume (MPC) is:
a. 0.20. b. 0.40. c. 0.50. d. 0.80. e. 1.00.
Which of the following is necessary to make a trade in a barter economy?
A. Money B. Unlimited wants C. A medium of exchange D. A coincidence of wants