Question 37 Assume the MPS is 0.25. Assuming only the multiplier effect matters, a decrease in government purchases of $
Posted: Thu May 19, 2022 8:23 am
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.