If the government wishes to decrease GDP by $2,000b, and the MPC is 0.6, it should:
A. increase its spending by $1,200b.
B. decrease its spending by $1,200b.
C. increase its spending by $800b.
D. decrease its spending by $800b.
D. decrease its spending by $800b.
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In the figure above, the marginal product of the second worker is
A) 10 units. B) 5 units. C) 2 units. D) 1 units.
In a sequential contestable market game
A) a small number of firms can behave like firms in perfect competition. B) the outcome is always a monopoly equilibrium. C) the dominant firm always makes a monopoly profit, while other firms make zero economic profits. D) a firm that enters the market first is protected from potential entrants by natural barriers.
From 2007 to 2015, the amount of assets owned by the Fed approximately
A) doubled. B) tripled. C) quadrupled. D) quintupled.
The three main monetary policy tools used by the Federal Reserve to manage the money supply are
A) interest rates, tax rates, and government spending. B) tax rates, government purchases, and government transfer payments. C) open market operations, discount policy, and reserve requirements. D) open market operations, the exchange rate of the dollar against foreign currencies, and government purchases.