Compared to a country with an MPC of 0.9, a country with an MPC of 0.5 would have to change government expenditures by ________ as much to have the same impact on real GDP.
A. twice
B. three times
C. four times
D. five times
Answer: D
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Explain why the timing of fiscal policy may be more difficult than the timing of monetary policy
What will be an ideal response?
While veterans' benefits appear as part of other categories of federal expenditures, they include
a. disability and survivors' compensation, education, and medical care b. education and food stamps c. net interest and medical care d. SSI and medical care e. education and housing
Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1. A Japanese citizen purchasing this machine would pay:
A. 500 yen. B. 5,000 yen. C. 10,000 yen. D. 50,000 yen.
Suppose that a specific tax of $3 is imposed on consumers of bread. The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P. What is the consumers' tax burden?
A) Consumers' tax burden is $1.30. B) Consumers' tax burden is $1.00. C) Consumers' tax burden is $1.50. D) Consumers' tax burden is $0.30