Assume That the Marginal Propensity to Consume Is 0

question 278

Multiple Choice

Assume that the marginal propensity to consume is 0.8. Government purchases of goods and services increase by $100 billion, financed by a $100 billion tax increase. Real GDP will:

• A)expand by $100 billion.
• B)contract by $100 billion.
• C)expand by $500 billion.
• D)expand by $400 billion.

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Definitions:

Appointed

Selected or designated for a position or duty, often by an authority or through a formal process.

Reversible Error

A legal error at the trial court level that is significant enough to have affected the outcome of the case. It is grounds for reversal of the judgment on appeal.

Procedural Error

Mistakes made in the legal processes during a lawsuit or trial that can affect the outcome or fairness of the proceedings.

Litigation Error

A mistake or oversight that occurs during the legal process, possibly affecting the outcome of a trial or hearing.