If the MPC is 0.8, what change in investment spending is required to effect a total change in income by $60 billion?
A) $12 billion
B) $15 billion
C) $20 billion
D) $25 billion
Correct Answer:
Verified
Q180: The so-called Paradox of Thrift that became
Q181: The multiplier can be calculated by dividing
A)the
Q182: Art Buchwald's article in the Last Word
Q183: Assume that MPS is 0.4.If spending increases
Q184: The change in real GDP resulting from
Q186: Generally speaking, the greater the MPS, the
A)smaller
Q187: The simple multiplier 1/MPS
A)understates the actual multiplier
Q188: In general, the steeper the consumption schedule,
Q189: Which statement about the multiplier is correct?
A)If
Q190: If households in the economy save more
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