Question 37 Assume the MPS is 0.25. Assuming only the multiplier effect matters, a decrease in government purchases of $

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Question 37 Assume The Mps Is 0 25 Assuming Only The Multiplier Effect Matters A Decrease In Government Purchases Of 1 (21.85 KiB) Viewed 38 times

Question 37 Assume the MPS is 0.25. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will a, decrease Real GDP by $100 billion. b. increase Real GDP by $133.33 billion, c. decrease Real GDP by $400 billion, d. increase Real GDP by $400 billion, e decrease Real GDP by $133.33 billion. f. none of the above is correct.