Question
If the MPC is 0.4, the initial impact of an increase of $10 billion in government purchases will be to cause a(n): -$4 billion rise
If the MPC is 0.4, the initial impact of an increase of $10 billion in government purchases will be to cause a(n):
-$4 billion rise in the economy's output
-$10 billion rise in the economy's output
-extra $6 billion in withdrawals
-extra $10 billion in withdrawals
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
