Given the marginal propensity to consume = .75 and marginal propensity to import = .15, then we should expect (ceteris paribus) that an autonomous reduction of net exports = - $100 will Group of answer choices reduce GDP by $400. reduce GDP by $50. not affect the level of GDP. reduce GDP by $100. reduce GDP by $250.
Given the marginal propensity to consume = .75 and marginal propensity to import = .15, then we should expect (ceteris paribus) that an autonomous reduction of net exports = - $100 will Group of answer choices reduce GDP by $400. reduce GDP by $50. not affect the level of GDP. reduce GDP by $100. reduce GDP by $250.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Given the marginal propensity to consume = .75 and marginal propensity to import = .15, then we should expect (ceteris paribus) that an autonomous reduction of net exports = - $100 will
Group of answer choices
reduce
reduce GDP by $50.
not affect the level of GDP.
reduce GDP by $100.
reduce GDP by $250.
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