When government spending is added to the basic macroeconomic model, the multiplier for G would
a. be higher than the multiplier for autonomous spending.
b. be lower than the multiplier for autonomous spending.
c. be equal to the multiplier for autonomous spending.
d. have no relationship to the autonomous spending multiplier.
c
You might also like to view...
A scatter diagram could help a policy maker decide on the size of a tax cut necessary to increase consumer expenditures by a certain amount.
Answer the following statement true (T) or false (F)
When demand is inelastic, an increase in price will result in an increase in total revenue.
Answer the following statement true (T) or false (F)
In the figure above, with no government involvement and if the colleges are competitive, what is the tuition?
A) $10,000 per year B) $14,000 per year C) $8,000 per year D) $16,000 per year
Which of the following is true of U.S. national debt between 1958 and 2010?
a. Total debt in the U.S. crossed $104 trillion in 2009. b. Debt as a percentage of GDP was the highest in the year 1978. c. Net interest payable by the U.S. government was the highest in the year 1990. d. Interest payment as a percentage of total government spending was the highest in 2009. e. Net interest payable by the U.S. government crossed $250 billion in 2009.