--%>

Equilibrium GDP

Provide solution of this question. If the MPC is .70 and gross investment increases by $3 billion, the equilibrium GDP will: A) increase by $10 billion. B) increase by $2.10 billion. C) decrease by $4.29 billion. D) increase by $4.29 billion.

   Related Questions in Microeconomics

  • Q : Marginal cost by price discriminate

    When a monopolist which does not price discriminate maximizes profit and charges a price equal to marginal cost, this will: (i) minimize average cost and generate zero economic profit. (ii) minimize average cost and generate a positiv

  • Q : Annuity of the Perpetuity Dividing the

    Dividing the annuity of the perpetuity by the interest rate gives in the perpetuity’s: (w) rate of return. (x) present value. (y) internal rate of discount. (z) capitalization rate. Can someo

  • Q : When is price elasticity of demand

    The price elasticity of demand is considered as to be inelastic when the computed value is: (w) less than one although greater than zero. (x) greater than zero. (y) one. (z) zero. Hello guys I want your advice. Ple

  • Q : Rate of return on financial investment

    When you can buy a bond today for $1,000 and this will mature at $1,210 two years from currently, the rate of return on this financial investment is: (1) 10%. (2) 10.5%. (3) 11%. (4) 12%. (5) 21%.

    Q : Law of demand is price in the law of

    is price in the law of demand an absolute or relative price

  • Q : Firms and Transaction Costs An

    An individual or organization which simultaneously purchases low and sells high in various markets is a/an: (i) Angel duster. (ii) Escalator. (iii) Arbitrageur. (iv) Finagler.  (v) Optimizer. Can someone please help me in find

  • Q : Price elasticity of demand coefficient

    In this demonstrated figure, there the price elasticity of demand coefficient is: (1) one at the midpoint. (2) greater than one in range a. (3) less than one in range b. (4) falling along with movements down along the demand curve. (5) All of the abov

  • Q : Bank rate on money supply What will be

    What will be the consequence of a rise or fall in the bank rate on money supply? Answer: It will reduce or raise the money supply.

  • Q : Effects of price in Complementary Goods

    The demands for vast new sport utility vehicles [or SUVs] like Hummers and Ford Explorers would most likely reduce most sharply in response to a 50%: (i) Rise in the annual cost of driver’s license. (ii) Decreasing in rent on luxury apartments on the center of b

  • Q : Examples of Substitution goods

    Illustrations of goods which are close substitutes comprise: (i) Technology and capital. (ii) Motorcycles and helmets. (iii) Chopsticks and forks. (iv) Cowhides and beef. Find out the right answer from the above op