sedilei1515
30.11.2019 •
Business
Gif the mpc is 3/5 then the multiplier is a. 4, so a $100 increase in government spending increases aggregate demand by $400. b. 1.5, so a $100 increase in government spending increases output by $150. c. 2.5, so a $100 increase in government spending increases aggregate demand by $250. d. 1.67, so a $100 increase in government spending increases output by $166.67.
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Ответ:
Option (c) is correct.
Explanation:
Marginal propensity to consume (MPC) = 3/5
= 0.6
Therefore,
Multiplier = 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.6)
= 1 ÷ 0.4
= 2.5
Hence, if there is an increase in the government spending by $100, then,
Aggregate demand increases by:
= Change in Government spending × Multiplier
= $100 × 2.5
= $250
Ответ: