4. If the marginal propensity to consume is 0.5, then a $100 million increase in investment spending

Question:

4. If the marginal propensity to consume is 0.5, then a $100 million increase in investment spending will increase real GDP by

a. $100 million.

b. $200 million.

c. $50 million.

d. $150 million.

e. $300 million.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

See More Books

Question Posted: Oct 16, 2024 09:00 AM

See More Questions

HI PLEASE ANSWER ALL 78 MULTIPLE CHOICE QUESTIONS THANK YOU 1. Which of the following will lead to a decrease in both equilibrium price and quantity in a market? a)A decrease in demand b)An increase...
What is the benefit to maintaining price stability within a country? Select one: a. Consumers and businesses can safely pursue long-term consumption and production plans. b. Expansion in national...
1. Business cycles are linked to the interaction between: a. the foreign exchange rate and the balance of payments account. b. the aggregate demand and aggregate supply curves. c. the demand and...
Explicitly justify relationships (11.5.3) between the compliances of the plane stress and plane strain theories. Equation 11.5.3 B11 B22 B66 = S11 S33-S2 $33 S22 S33-S23 S33 S66 S33 - S36 S33 B12 B16...
Maria is a single individual with taxable income of $75,000 in 2016. What marginal tax rate should she use to determine the tax savings from a $2,000 deductible expense?
The following selected transactions were completed by Lindbergh Delivery Service during October: 1. Received cash from owner as additional investment, $75,000. 2. Paid rent for October, $4,200. 3....
4. If the marginal propensity to consume is 0.5, then a $100 million increase in investment spending will increase real GDP by a. $100 million. b. $200 million. c. $50 million. d. $150 million. e....
Ethan is the leader of a team with N members. He has assigned an error score to each member in his team based on the bugs that he has found in that particular team member's task. Because the error...
Is my answer correct to this question : 1) operator < is very important because it will help us determine if a date comes before the other date. prototype: ------------ bool operator
3. Assuming no taxes and no trade, the multiplier is equal to: a. MPC b. 1 1 - MPC c. 1 1 + MPC d. 1 MPC e. 1 - MPC
5. When income is $1,000, the level of consumption spending is equal to $850. When income rises to $1,200, the level of consumption spending is equal to $1,000. In this case the value of the marginal...
A fluid ( = 10 2 N s /m 2 ; = 800 kg/m 3 ) flows with a mean velocity of 4 cm/s in a 10 cm smooth pipe. a. What is the value of the Reynolds number? b. What is the magnitude of the maximum velocity...
Appliances Unlimited (AU) sells refrigerators. Any refrigerator that fails before it is three years old is replaced for free. Of all refrigerators, 2% fail during their first year of operation; 4% of...
For the current year, Conres Corp., a CCPC, has aggregate investment income (AII) of $110,000 and taxable income of $400,000, of which $290,000 is eligible for the SBD. Federal Part I tax is $68,633....
24SP MATH 101 Mathematics for Liberal Arts Homework Week 1. What percent of the standard normal z -distribution lies between the following values? (Round all answers to two decimal places.) (a) z = 0...
The following mini-case is broken into several parts with a question for each part. It is important that you not read ahead, but rather read each part and answer the associated questions. It's not...
For the histogram shown, choose the statement that is TRUE . The mean victim age is less than the median victim age. The mean victim age is equal to the median victim age. The mean victim age is more...
Mary O'Leary's company ships fine wool garments from County Cork, Ireland. Five years ago she purchased some new automated packing equipment having a first cost of $125,000 and a MACRS class life of...
What is master production scheduling and how is it done?

4. If the marginal propensity to consume is 0.5, then a $100 million increase in investment spending

Question:

Step by Step Answer:

Macroeconomics In Modules

Students also viewed these Business questions