26)Which of following will result in long run economic growth?

Question 26 options:

A)A drop in the unemployment rate from 10% to 7%.

B) An increase in imports.

C)A new oil discovery within the U.S.

Question 27(1 point)

27)When the marginal propensity to consume equals 90% ( mpc = 0.9 ), what will be the value

of the income multiplier?

Question 27 options:

A)4

B)5

C)10

D)20

Question 28(1 point)

28)If new spending occurs, an economy willkeep on growing until:

Question 28 options:

A)Injections>Withdrawals

B)Injections=Withdrawals

C)Injections

Question 29(1 point)

29)If investment spending increases by $100 billion and thempc = .75, how much will

the economy grow?

Question 29 options:

A) $400 billion.

B) $500 billion.

C)$1000 billion

D) $2000 billion.

Question 30(1 point)

30)What is the correct fiscal policy response to arecessionarygap?

Question 30 options:

A)An increase in government spending.

B)A decrease in government spending.

C)An increase in taxes.