Suppose That Congress Allocates $1 Billion to Clean Up After

question 84

Multiple Choice

Suppose that Congress allocates $1 billion to clean up after the hurricanes of 2005.It also raises taxes by $1 billion to keep the deficit from growing.If the marginal propensity to consume is 0.9,what is the effect on equilibrium GDP?

• A)GDP does not change.
• B)GDP increases by $10 billion.
• C)GDP increases by $900,000.
• D)GDP increases by $1 billion.

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Definitions:

Parent-Country Nationals

Individuals who are citizens of the country where a multinational company has its headquarters.

Cultural Norms

The shared expectations and rules that guide behavior of people within social groups, including organizations, influencing how individuals act and interact.

International HR Planning

The strategic process of forecasting and meeting the human resources needs of an organization on a global scale.

Existing HR System

The current set of processes, practices, and technologies used by an organization to manage its human resources.