Author Question: If the crowding-out effect is complete and the marginal propensity to save is 0.25, then an increase ... (Read 28 times)

APUS57 · **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