× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
7
n
3
j
3
o
2
x
2
c
2
2
p
2
n
2
3
2
C
2
z
2
New Topic  
AutoPenalti AutoPenalti
wrote...
Posts: 318
Rep: 0 0
5 years ago
Suppose that Congress allocates $5 billion to an "energy-efficient appliance rebate" program. It also raises taxes by $5 billion to keep the deficit from growing. If the marginal propensity to consume is 0.8, what is the effect on equilibrium GDP?
A) GDP does not change.
B) GDP increases by $25 billion.
C) GDP increases by $4 billion.
D) GDP increases Answer: llion.
Textbook 
InMacro

InMacro


Edition: 1st
Authors:
Read 102 times
1 Reply

Related Topics

Replies
wrote...
5 years ago
llion.
Answer: D
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  997 People Browsing
Related Images
  
 209
  
 175
  
 5905
Your Opinion
Which country would you like to visit for its food?
Votes: 204