If households save $30 billion more at each level of income and the marginal propensity to consume (MPC) is 0.9, the aggregate expenditure line will _____
a. intersect the 45-degree line at a real GDP of $30 billion
b. shift upward by $30 billion
c. shift downward by $30 billion
d. shift upward by $300 billion because of the multiplier effect
e. shift downward by $300 billion because of the multiplier effect
c
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Which of the following is an assumption used when drawing a production possibilities frontier?
i. Human wants and desires are limited to what is available. ii. Only two goods are considered. iii. The level of technology is fixed and unchanging. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
Federal law required that no two Federal Reserve Board Governors come from the same
A) state. B) political party. C) industry. D) Federal Reserve district.
Because employer-provided health insurance was too expensive, a major employer decided to self-insure and simply pay for medical bills itself rather than a premium to an insurance company. As a result
a. they are more likely to institute a wellness program for employees b. they are less likely to institute a wellness program for emp c. they are indifferent with regards wellness programs d. they will regret this decision
Vertical equity refers to the notion that individuals at all levels should be taxed equally.
Answer the following statement true (T) or false (F)