In the Keynesian Cross model, if government spending is raised by $100 million income must a. rise by more than $100 million. b. rise by $100 million. c. rise by less than $100 million. d. rise, but it is not clear how much

In the Keynesian Cross model, if government spending is raised by $100 million income must a. rise by more than $100 million. b. rise by $100 million. c. rise by less than $100 million. d. rise, but it is not clear how much

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter17: Stabilizing The National Economy

Section17.2: The Fiscal Policy Approach To Stabilization

Problem 3R

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Question

In the Keynesian Cross model, if government spending is raised by $100 million,
income must
a. rise by more than $100 million.
b. rise by $100 million.
c. rise by less than $100 million.
d. rise, but it is not clear how much

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