The higher government expenditures, the: Select one alternative: Level of government expenditures does not affect the level of investment multiplicator Lower investment multiplicator Higher investment multiplicator
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The higher government expenditures, the:
Select one alternative:
- Level of government expenditures does not affect the level of investment multiplicator
- Lower investment multiplicator
- Higher investment multiplicator
Step by step
Solved in 3 steps
- Increasing government purchases of goods and services would have a bigger multiplier effect on real GDP than decreasing taxes, dollar for dollar. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b True FalseIf the multiplier is 4 and real GDP increases by $520 billion, the increase in investment spending must have been Group of answer choices $120 billion. $140 billion. $110 billion. $130 billion.If consumers spend 90 cents out of every extra dollar received, the A) MPS is 0.10 B) MPC is 0.90 C) Multiplier is 10 D) All of the above
- As part of the response to the Covid-19 virus, the Federal government passed a 2 Trillion-dollar bill. This increase in spending must result in which of the following? lower future taxes higher government spending some combination of lower future government spending and higher future taxes all available are true two of the available are trueIf the MPC=0.75, what is the effect of a $60 billion increase in autonomous consumption on RGDP? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Multiplier Effect Question, Initial investment of 2 billion and getting 9 billion in total revenue after reinvestment
- The multiplier can be defined as: Select one: A. The ratio of the rise in national income to the rise in injections that caused it B. The ratio of the rise in government expenditure to the resulting rise in national income C. The ratio of a rise in investment to the resulting rise in withdrawals D. The ratio of a change in injections to a change in withdrawalsIf the multiplier is 10, A) MPS is 0.1 B) MPC is 0.9 C) Both a and b are correct answers D) None of the aboveSuppose that the federal government has decided to build a new bridge over Lake Washington. The environmental impact review of two methods of construction is part of the implementation lag. decision lag. information lag. multiplier lag.
- Marginal Propensity to Consume = 0,7, so Marginal Propensity to Save: Select one alternative: MPS=0,3 MPS=1,3 MPS=1,7If the MPC is 0, then the multiplier is A. 1. B. 0. C. infinite. D. None of the above is correct.Marginal propensity to consume = 0.8; In an economy with tax rate = 0.25 and Marginal propensity to import = 0.10, how much would an increase of 250 units in autonomous spending increase the equilibrium income level?
