subject
Business, 17.04.2020 19:00 kkruvc

The government increases both its expenditures and taxes by $400 billion. There is no crowding out and no accelerator effect. Aggregate demand shifts by $400 billion. Which of the following is consistent with how far aggregate demand shifts?
a. MPC = 1/2, and the effects of the increase in taxes is 1/2 as strong as the change in government expenditures.
b. MPC = 2/3, and the effects of the increase in taxes is 2/3 as strong as the change in government expenditures
c. MPC = 3/4, and the effects of the increase in taxes is 3/4 as strong as the change in government expenditures
d. All of the above are correct

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 19:00, kaitlynbrace9742
Sara is a manager at a restaurant with employees from different cultural backgrounds. which action of sara could employees perceive as an act of favoritism?
Answers: 1
image
Business, 21.06.2019 22:30, indiareed0orv5ul
What two elements normally must exist before a person can be held liable for a crime
Answers: 1
image
Business, 22.06.2019 08:00, shatj960
Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows: treadmill exercise bike total sold 185 123 service contracts 67 55 the store can only sell a service contract on a new piece of equipment. of the 185 treadmills sold, 67 included a service contract and 118 did not.
Answers: 1
image
Business, 22.06.2019 08:40, adrian08022
Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.
Answers: 1
You know the right answer?
The government increases both its expenditures and taxes by $400 billion. There is no crowding out a...

Questions in other subjects: