The multiplier effect of fiscal policy predicts that an increase in government spending of $250 billion will increase total income by $833.33 billion if the marginal propensity to consume is 0.70.

if we account for crowding-out, then the increase in aggregate demand will be: a. more than $833.33 billion. b. less than $833.33 billion. c. exactly $833.33 billion.

True of false: the chancellor of a university has commissioned a team to collect data on students' gpas and the amount of time they spend bar hopping every week (measured in minutes). he wants to know if imposing much tougher regulations on all campus bars to make it more difficult for students to spend time in any campus bar will have a significant impact on general students' gpas. his team should use a t test on the slope of the population regression.