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Social Science Clinic => Economics => Topic started by: RODY.ELKHALIL on Apr 19, 2019

Title: Assume there is no government or foreign sector. If the multiplier is 5, a $4 billion increase in ...
Post by: RODY.ELKHALIL on Apr 19, 2019

Question 1

Assume there is no government or foreign sector. If the 
MPS is 0.10, a $20 billion decrease in planned investment will cause aggregate output to decrease by

◦ $20 billion.
◦ $50 billion.
◦ $100 billion.
◦ $200 billion.

Question 2

Assume there is no government or foreign sector. If the multiplier is 5, a $4 billion increase in investment will cause aggregate output to increase by

◦ $125 billion.
◦ $80 billion.
◦ $50 billion.
◦ $20 billion.

Title: Assume there is no government or foreign sector. If the multiplier is 5, a $4 billion increase in ...
Post by: emily12345 on Apr 19, 2019

Answer 1

$200 billion.

Answer 2

$20 billion.

Title: Re: Assume there is no government or foreign sector. If the multiplier is 5, a $4 billion increase i
Post by: Ngọc Nhi on Dec 20, 2023

thank you for your answer