Which of the following statements is incorrect?Given the economy's MPS, a $15 billion reduction in government spending will reduce the equilibrium GDP by more than a $15 billion increase in taxes would.If the MPC is 0.8 and GDP has declined by $40 billion, this was caused by a decline in aggregate expenditures of $8 billion.Other things unchanged, a tax reduction of $10 billion will increase the equilibrium GDP by $25 billion when the MPS is 0.4.A government surplus is an anti-inflationary; a government deficit is expansionary.

Question

06-10-2020
Business

contestada

Which of the following statements is incorrect?Given the economy's MPS, a $15 billion reduction in government spending will reduce the equilibrium GDP by more than a $15 billion increase in taxes would.If the MPC is 0.8 and GDP has declined by $40 billion, this was caused by a decline in aggregate expenditures of $8 billion.Other things unchanged, a tax reduction of $10 billion will increase the equilibrium GDP by $25 billion when the MPS is 0.4.A government surplus is an anti-inflationary; a government deficit is expansionary.

Respuesta :

Otras preguntas

Which sentence uses correct punctuation?A) I agree with Tibetan Buddhist Dalai Lama Tenzin Gyatso's statement that "Sleep is the best meditation."B) I agree wit

Who belonged to the class of plebeians in ancient Rome?Pick all that apply. artisans landowners nobles priests farmers merchants

How does fluid intake affect bowel elimination

Hamlet hid Polonius's body in the horse stables. TrueFalse

What does the electron transport chain do to the concentration of hydrogen ions (protons)?

Because of retinal disparity, we can enjoy:

Which one describes the translation of f(x) to g(x) ?

which of these groups was organized to fight back against the British government in the years leading up to the American revolution

Workers are most at risk from falling objects when standing or working

A red bird and a blue bird mate, and their offspring are purple in color. What type of inheritance is this?

jepessoa jepessoa · Answer 1 · 2020-10-10T18:41:54+02:00

Answer:

Other things unchanged, a tax reduction of $10 billion will increase the equilibrium GDP by $25 billion when the MPS is 0.4.

Explanation:

An increase in government spending of $10 billion will increase the equilibrium GDP by $25 billion when the MPS is 0.4.

Tax cuts/increases do not have the same effect as changes in government spending. The multiplier = 1/MPS is used to measure how an economy will react as a result of a change in government spending.