If the Crowding-Out Effect Is Complete and the Marginal Propensity

question 140

Multiple Choice

If the crowding-out effect is complete and the marginal propensity to save is 0.1, then an increase in government spending of $400 billion will generate how much more real GDP?

• A) $0
• B) $40 billion
• C) $100 billion
• D) $400 billion

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Definitions:

Discrimination

The unequal treatment of individuals or groups based on their characteristics or behaviours. It involves actions or practices of dominant group members that have a harmful impact on members of a subordinate group.

Hispanics

Individuals or communities that originate from Spanish-speaking countries, particularly those from Latin America and Spain.

Heterosexism

The belief in the natural superiority of heterosexuality as a way of life and therefore its logical right to dominance. Comprised of a system of ideas and institutionalized beliefs, it leads to the oppression of any non-heterosexual form of behaviour, identity, relationship, or community.

Same-sex Marriage

The legally or socially recognized marriage between two individuals of the same biological sex or gender identity.