Suppose the marginal propensity to save (MPS) is 0.25. If government expenditure goes up by $50 billion, then you can re
Posted: Sun May 29, 2022 7:43 pm
Suppose the marginal propensity to save (MPS) is 0.25. If
government expenditure goes up by $50 billion, then you can
reasonably expect that, ceteris paribus: Group of answer
choices
Real GDP (Y) in the economy will increase by $200 billion.
Real GDP (Y) in the economy will increase by $12.5 billion.
Real GDP (Y) in the economy will stay unchanged since this is
only affected by consumer spending and not government
expenditure.
Taxes will go up by $50 billion to balance the budget.
government expenditure goes up by $50 billion, then you can
reasonably expect that, ceteris paribus: Group of answer
choices
Real GDP (Y) in the economy will increase by $200 billion.
Real GDP (Y) in the economy will increase by $12.5 billion.
Real GDP (Y) in the economy will stay unchanged since this is
only affected by consumer spending and not government
expenditure.
Taxes will go up by $50 billion to balance the budget.