The next questions refer to the following simple Keynesian model.
Suppose C = 1000 + .9Y, G = 400, I = 100, (X - IM) = 0, and there are no income taxes.
-If government purchases increase by 100,equilibrium GDP will
A) rise by 25%
B) rise by a factor of 10
C) rise by 90
D) rise by 100
E) rise by 1,000
Correct Answer:
Verified
Q1: If the consumption function is C =
Q2: The next questions refer to the following.
An
Q4: The marginal propensity to consume is
A) identical
Q5: The Keynesian cross model attributes differences between
Q6: The marginal propensity to consume is
A) consumption
Q7: The next questions refer to the following.
Current
Q8: According to the simple Keynesian model,if disposable
Q9: The expenditure multiplier
A) is defined as the
Q10: The next questions refer to the following.
An
Q11: The next questions refer to the following.
An
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