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Author Question: If the crowding-out effect is complete and the marginal propensity to save is 0.25, then an increase ... (Read 33 times)

APUS57

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on: Jun 30, 2018
If the crowding-out effect is complete and the marginal propensity to save is 0.25, then an increase in government spending of 100 billion will generate how much more real GDP?
 
  A) 0 B) 400 billion C) 25 billion D) 100 billion

Question 2

Continuous increase in investment in which of the following is most likely to cause sustained growth?
 
  A) Capital B) Technology C) Land D) Labor


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joshraies

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

B


APUS57

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

FergA

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Reply 3 on: Yesterday
Excellent

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