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Author Question: If the government spending multiplier is 10 and government purchases decrease by $20 billion, output ... (Read 242 times)

sammy

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Question 1

If the 
MPC is 0.75, the tax multiplier is


◦ -2.5.
◦ -3.
◦ -4.
◦ -5.

Question 2

If the government spending multiplier is 10 and government purchases decrease by $20 billion, output will decrease by


◦ $2 billion.
◦ $20 billion.
◦ $40 billion.
◦ $200 billion.


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Marked as best answer by sammy on Apr 19, 2019

nathang24

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sammy

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  • Posts: 818
Reply 2 on: Apr 19, 2019
Excellent


strudel15

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  • Posts: 324
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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