If income increases by $10,000 . government purchases are fixed at $1,000 . investment spending is fixed at $2,000 . net exports are fixed at $500, and the marginal propensity to consume is 0.70, by how much does aggregate expenditure increase?
a. $700
b. $2,000
c. $7,000
d. $1,000
e. $1,400
C
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Gross national product, GNP, of the United States is the market value of all final goods and services
A) consumed by citizens of the United States anywhere in the world. B) consumed within the United States. C) produced within the United States. D) produced by citizens of the United States anywhere in the world.
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company decided to alter the
compensation to a percentage of the profit earned per new store. This puts the consultants a. In a less risky position b. A more risky position c. In risk neutral position d. None of the above
Research has shown that a person is more likely to vote if which of the following is true?
a. they feel connect to the community they live in b. the costs of voting is extremely low c. they do not feel connected to the community they live in d. there has been a large amount of campaign spending
IF a period of substantial inflation, increasing gov. spending would _________
Fill in the blank(s) with the appropriate word(s).