Author Question: If an economy's MPCis 0.75 and the MPMis 0.25, then an increase in government spending of $2,000 ... (Read 22 times)

kaid0807 · **on:** Apr 19, 2019

Question 1

The open economy multiplier will increase if

◦ the
MPC increases.
◦ the
MPM decreases.
◦ either the
MPM or the
MPC increases.
◦ the
MPM increases.

Question 2

If an economy's
MPC is 0.75 and the
MPM is 0.25, then an increase in government spending of $2,000 will increase income by

◦ $2,100.
◦ $3,000.
◦ $4,000.
◦ $8,000.

ecabral0 · **Reply #1 on:** Apr 19, 2019

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kaid0807 · **Reply #2 on:** Apr 19, 2019

TY

ecabral0 · **Reply #3 on:** Apr 19, 2019

You're welcome

Author Question: If an economy's MPCis 0.75 and the MPMis 0.25, then an increase in government spending of $2,000 ... (Read 22 times)

kaid0807

If an economy's MPCis 0.75 and the MPMis 0.25, then an increase in government spending of $2,000 ...

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ecabral0

If an economy's MPCis 0.75 and the MPMis 0.25, then an increase in government spending of $2,000 ...

kaid0807

If an economy's MPCis 0.75 and the MPMis 0.25, then an increase in government spending of $2,000 ...

ecabral0

If an economy's MPCis 0.75 and the MPMis 0.25, then an increase in government spending of $2,000 ...