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Q 1/10
Score 0
The multiplier is greater than 1
30
true
false
Q 2/10
Score 0
If the multiplier equals 4, then a $0.25 trillion increase in investment increases real GDP by $1.0 trillion
30
true
false
10 questions
Q.
The multiplier is greater than 1
1
30 sec
Q.
If the multiplier equals 4, then a $0.25 trillion increase in investment increases real GDP by $1.0 trillion
2
30 sec
Q.
The smaller the marginal propensity to consume, the larger is the multiplier.
3
30 sec
Q.
The multiplier is equal to the change in __________ divided by the change in _________.
4
30 sec
Q.
The multiplier is larger than 1 because
5
30 sec
Q.
If an increase in government spending of $100 billion increases equilibrium output by a total of $500 billion, then the marginal propensity to consume must be at least
6
30 sec
Q.
An increase in the marginal propensity to save clearly causes a decrease in which of the following?
7
30 sec
Q.
Assume that current real GDP falls short of full-employment output by $400 billion and the marginal propensity to consume is 0.8. What is the minimum increase in government spending that could bring about full employment?
8
30 sec
Q.
A decrease in government spending by a given amount accompanied by a decrease in taxes by the same amount will cause which of the following?
9
30 sec
Q.
A decrease in interest rates resulting in the increase in capital stock will likely cause which of the following in the long-run?