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Author Question: If government spending is increased by $500, taxes are reduced by $200, and the MPSis 0.2, ... (Read 81 times)

bobypop

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on: Apr 19, 2019

Question 1

If the tax multiplier is -5.25, then the government purchases multiplier


◦ is 6.25.
◦ is 4.75.
◦ is 0.75.
◦ cannot be determined because the 
MPS is not given.

Question 2

If government spending is increased by $500, taxes are reduced by $200, and the 
MPS is 0.2, equilibrium output will change by


◦ $1,500.
◦ $1,700.
◦ $3,300.
◦ $3,500.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by bobypop on Apr 19, 2019

kingdude89

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bobypop

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Reply #2 on: Apr 19, 2019
Thank you!


kingdude89

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Reply #3 on: Apr 19, 2019
Always glad to help...


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