An example of fiscal policy is: A) decrease in the exchange rate OB) decrease in the price level C) increase in the real interest rate OD) Increase in personal income taxes
An example of fiscal policy is: A) decrease in the exchange rate OB) decrease in the price level C) increase in the real interest rate OD) Increase in personal income taxes
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![An example of fiscal policy is:
A) decrease in the exchange rate
OB) decrease in the price level
C) increase in the real interest rate
OD) Increase in personal income taxes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F453dcdbb-b866-4708-836c-e051cb1ddb8f%2F5597e1fe-be91-4055-95ba-a7e274267253%2F0z5lhn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An example of fiscal policy is:
A) decrease in the exchange rate
OB) decrease in the price level
C) increase in the real interest rate
OD) Increase in personal income taxes
![If the marginal propensity to consume (MPC) is 0.75, the expenditure multiplier will
be equal to
. (Enter your answer using ONE decimal place; refer to the
instructions if you need to refresh your memory on rules for rounding)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F453dcdbb-b866-4708-836c-e051cb1ddb8f%2F5597e1fe-be91-4055-95ba-a7e274267253%2F6vzyw9d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the marginal propensity to consume (MPC) is 0.75, the expenditure multiplier will
be equal to
. (Enter your answer using ONE decimal place; refer to the
instructions if you need to refresh your memory on rules for rounding)
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