QUESTIONS In 2009 President Obama and Congress increased government spending. Some economists thought this increase woul

[answerhappygod]

Questions In 2009 President Obama And Congress Increased Government Spending Some Economists Thought This Increase Woul 1 (48.7 KiB) Viewed 30 times

QUESTIONS In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effect on output. Which of the following would make the effect of an increase in government expenditures on aggregate demand smaller? Oa, the MPC is large and changes in the interest rate have a large effect on investment Ob the MPC is small and changes in the interest rate have a large effect on investment the MPC is large and changes in the interest rate have a small effect on investment Od the MPC is small and changes in the interest rate have a small effect on investment QUESTION 9 The government increases both its expenditures and taxes by S400 billion. There is no crowding out and no accelerator effect Aggregate demand shifts by 8400 billion. Which of the following is consistent with how far aggregate demand shifts? a. MPC-1/2, and the effects of the increase in taxes is 1/2 as strong as the change in government expenditures. Ob. MPC - 2/3, and the effects of the increase in taxes is 2/3 as strong as the change in government expenditures OC MPC 3/4, and the effects of the increase in taxes is 3/4 as strong as the change in government expenditures Od All of the above are correct. QUESTION 10 The positive feedback from aggregate demand to investment is called a the investment accelerator. b. the crowding-in multiplier. Oc the investment multiplier Od the crowding-out cffect.