Introduction to Economics 2 Deneme Sınavı Sorusu #350017

In an economy with marginal propensities to save and to import are 0.30 and 0.20, respectively, what is the net effect of 250-lira increase in government expenditures and taxes on income?

125

175

250

375

500

Yanıt Açıklaması:

Since government expenditure increase is totally financed by tax increase, there will be an increase in income that equals expenditure increase considering the balanced budget multiplier concept.

PAYLAŞ:

SORUNUN CEVABI: C

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Introduction to Economics 2 Deneme Sınavı Sorusu #350017

In an economy with marginal propensities to save and to import are 0.30 and 0.20, respectively, what is the net effect of 250-lira increase in government expenditures and taxes on income?

SORUNUN CEVABI: C

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