Author Question: An increase in government spending by 100 would, if the MPC = 0.90, result in an increase in real ... (Read 6 times)

haleyc112 · **on:** Jun 30, 2018

An increase in government spending by 100 would, if the MPC = 0.90, result in an increase in real GDP by:
a. 1,000.
b. 9,000.
c. 900.
d. 190.
e. inadequate information is given.

Question 2

According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?
a. prices
b. real income
c. velocity
d. employment