Exhibit: Multiplier The marginal propensity to consume is 0.8 , and potential output is $800 billion.
Reference: Ref 12-6 (Exhibit: Multiplier) If current real GDP is $850, which of the following policies
would bring the economy to potential output? Increase transfers by $12.5 billion. Increase taxes by
$50 billion. Increase taxes by $12.5 billion. Increase taxes by $10 billion.Suppose that Canadian
government debt is $700 billion dollars at the beginning of the fiscal year. During the fiscal year,
government spending and government transfers are $200 billion and tax revenues equal $150
billion. At the end of the fiscal year, the debt is: $1,050 billion. $750 billion. $900 billion. $650
billion..
Exhibit Multiplier The marginal propensity to consume is 0.pdf
1. Exhibit: Multiplier The marginal propensity to consume is 0.8 , and potential output is $800 billion.
Reference: Ref 12-6 (Exhibit: Multiplier) If current real GDP is $850, which of the following policies
would bring the economy to potential output? Increase transfers by $12.5 billion. Increase taxes by
$50 billion. Increase taxes by $12.5 billion. Increase taxes by $10 billion.Suppose that Canadian
government debt is $700 billion dollars at the beginning of the fiscal year. During the fiscal year,
government spending and government transfers are $200 billion and tax revenues equal $150
billion. At the end of the fiscal year, the debt is: $1,050 billion. $750 billion. $900 billion. $650
billion.
