This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP ... (Read 27 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
on: Jun 30, 2018
If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by 300 million, then by how much would they have to change taxes?
 a. -300 million.
  b. -200 million.
  c. -100 million.
  d. -50 million.

Question 2

Keynesians believe that an increase in the money supply will lead to:
 a. both c and d.
  b. all of the following.
  c. an increase in the price level.
  d. a decrease in nominal GDP.
  e. an increase in real GDP.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ApricotDream

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

e


Metfan725

  • Member
  • Posts: 552
Reply 2 on: Jun 30, 2018
Gracias!

tranoy

  • Member
  • Posts: 344
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
Mean scores for Erikson’s stage VI (Intimacy) for two cohorts. Scores for both cohorts increase ... Mean scores for Erikson’s stage VI (Intimacy) for two cohorts. Scores for both cohorts increase ...
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
You Need to Consume Carbohydrates Daily You Need to Consume Carbohydrates Daily
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
Video: Michaelis–Menten equation & Kinetic parameters

For a complete list of videos, visit our video library