If the expenditure multiplier is 3.5 and investment spending increases by $2,000 billion, what will be the change in GDP?
a. $2,000 billion
b. $5,000 billion
c. $571.4 billion
d. $3,500 billion
e. $7,000 billion
E
You might also like to view...
The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?
A) 41 books per hour B) 59 books per hour C) 73 books per hour D) 90 books per hour
________ occurs when market participants observe returns on a security that are larger than what is justified by the characteristics of that security and take action to quickly eliminate the unexploited profit opportunity
A) Arbitrage B) Mediation C) Asset capitalization D) Market intercession
The short-run supply curve of the perfectly competitive industry is found by summing the
A. AC curves of the individual firms in the industry. B. AVC curves of the individual firms in the industry. C. MC curves above AVC of the individual firms in the industry. D. There is no short-run supply curve in a competitive industry.
A fall in the U.S. price level will cause foreigners to:
A. substitute their own domestically-produced goods for U.S. goods. B. substitute U.S. goods for their own domestically-produced goods. C. buy more of their own domestically-produced goods. D. buy fewer U.S. goods.