Author Question: If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP ... (Read 41 times)

bio_gurl · **on:** Jun 30, 2018

If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP 200 billion, then by how much would they have to change taxes?
a. 240 million.
b. 200 million.
c. 180 million.
d. 50 million.

Question 2

An increase in the supply of money will lead to ____ in equilibrium real GDP and ____ in equilibrium price level.
a. an increase; an increase
b. an increase; a decrease
c. a decreases; an increase
d. a decrease; a decrease