If the MPC is .70 and investment increases by $3 billion, the equilibr

If the MPC is .70 and investment increases by $3 billion, the equilibrium GDP will:

   Related Questions in Macroeconomics

  • Q : Consumption curve Illustrate a point on

    Illustrate a point on consumption curve at which APC = 1.

    Answer:

    APC = C/Y = 1 is possible when C = Y, that is, Consumption is

  • Q : Define bank rate policy Define bank

    Define bank rate policy? How does it operate as a technique of credit control?

    Answer: Bank rate is the rate at which the central bank provides loans to the commerc

  • Q : Stock option price-Strike price-Put and

    What do you mean by the following terms: a stock option price, strike price and what are a put and a call?What is the merits or demerits of purchasing stock options over stocks? What function do Mutual Funds execute with Stock Market

  • Q : Interest receipt Why is interest

    Why is interest received classified as revenue receipt?

    Answer: Interest received is a revenue receipt since it does not build any liability nor it leads to the red

  • Q : State the Income Effect Can someone

    Can someone please help me in finding out the accurate answer from the following question. The Income effects are: (i) Adjustments people make since the purchasing power of the given income is modified whenever prices change. (ii) Adjustments people make since the pur

  • Q : Macro economics policy (a) Do you think

    (a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero? Why or why not should this be the case?

  • Q : What is Equilibrium quantity

    Equilibrium quantity: It is the quantity supplied and the quantity demanded at equilibrium price.

  • Q : Unemployment (a) Do you think that

    (a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero?

  • Q : Aggregate Expenditure model Describe

    Describe Aggregate Expenditure model and also state AD/AS model?

  • Q : In which of these two statements

    "In corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand."