QUESTION 2 Assume the MPC is 0.625. Assume there is a multiplier effect and that the total crowding-out effect is $12 bi

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Question 2 Assume The Mpc Is 0 625 Assume There Is A Multiplier Effect And That The Total Crowding Out Effect Is 12 Bi 1 (34.96 KiB) Viewed 35 times

QUESTION 2 Assume the MPC is 0.625. Assume there is a multiplier effect and that the total crowding-out effect is $12 billion. An increase in government purchases of $30 billion will shift aggregate demand to the a. left by $60 billion O b.right by $36 billion cleft by S36 billion O d.right by S68 billion QUESTION 3 The process of the investment accelerator involves O a positive feedback from aggregate demand to investment. O b. negative feedback from aggregate supply to investment Ocnegative feedback from aggregate demand to investment O d. positive feedback from aggregate supply to investment QUESTION 4 If it were not for the automatic stabilizers in the U.S. economy O a. it would be more desirable than it is now for the Federal Reserve to target an interest rate b. output and employment would probably be more volatile than they are now. Oca strict balanced-budget rule would be more desirable than it is now d. the Federal Reserve would have less reason than it has now to monitor stock prices,