APFIVE Government Spending Multiplier Calculation
Assuming the marginal propensity to consume (MPC) is 0.65, what is the estimated increase in real GDP resulting from a $30 billion increase in government spending?
A
Approximately $85.7 billion increase in real GDP.
B
Approximately $19.5 billion increase in real GDP.
C
Approximately $100 billion increase in real GDP.
D
Approximately $46.2 billion increase in real GDP.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | hajinkim1128 | 2 | 3 | 0m 54s | 136 |
| #2 | weitaolim986 | 1 | 1 | 0m 00s | 100 |
| #3 | Annie.Yang26 | 1 | 1 | 0m 00s | 100 |
| #4 | kadencorteen1 | 1 | 1 | 0m 38s | 62 |
| #5 | jasmineleung1007 | 1 | 2 | 1m 02s | 28 |
| #6 | omr999870 | 1 | 2 | 1m 16s | 14 |
| #7 | jia.savla10 | 1 | 1 | 1m 45s | -5 |
| #8 | nisharga.natarajan | 1 | 1 | 4m 00s | -140 |
| #9 | won2311 | 3 | 3 | 11m 24s | -384 |
| #10 | brainna.guscott | 1 | 2 | 18m 49s | -1,039 |
Items per page:
10
1 – 10 of 13