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

Author Question: If an increase in investment spending of 50 million results in a 400 million increase in equilibrium ... (Read 98 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
on: Jun 29, 2018
If an increase in investment spending of 50 million results in a 400 million increase in equilibrium real GDP, then
 
  A) the multiplier is 0.125. B) the multiplier is 3.5.
  C) the multiplier is 8. D) the multiplier is 50.

Question 2

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.
 
  A) higher; lower B) higher; higher C) lower; lower D) lower; higher


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

guyanai

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

B


sheilaspns

  • Member
  • Posts: 567
Reply 2 on: Jun 29, 2018
Excellent

abro1885

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Results from sequential study of two cohorts tested at three ages and at three different points in t Results from sequential study of two cohorts tested at three ages and at three different points in t
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
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 ...
Increase in Obesity among U.S. Children and Adolescents Increase in Obesity among U.S. Children and Adolescents
The chromosomal explanation of the results of the X-linked crosses The chromosomal explanation of the results of the X-linked crosses
A melting profile shows the increase in UV absorption versus temperature A melting profile shows the increase in UV absorption versus temperature
Video: Rena arc construction

For a complete list of videos, visit our video library