Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
sgy_89 sgy_89
wrote...
Go to Answer
Posts: 677
Rep: 0 0
7 years ago
Let's assume that the economy is in a recession, operating $100 billion below the full employment output. If the marginal propensity to consume is 0.8, in what direction and by what amount should the level of government spending be changed?
A) decrease government spending by $100 billion
B) increase government spending by $100 billion
C) decrease government spending by $20 billion
D) increase government spending by $20 billion
E) increase government spending by $80 billion
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
Read 114 times
1 Reply
Replies
Answer verified by a subject expert
hecosmetichecosmetic
wrote...
#1
Top Poster
Posts: 687
Rep: 8 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

sgy_89 Author
wrote...

7 years ago
This calls for a celebration Person Raising Both Hands in Celebration
husne
wrote...

Yesterday
Helped a lot
paulinaibarra98
wrote...

2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1403 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 191
  
 300
  
 942
Your Opinion
What's your favorite funny biology word?
Votes: 401
Previous poll results: Who's your favorite biologist?