Thank you for visiting If the recessionary gap is 2 trillion dollars and the multiplier is 2 then total spending would have to rise by A 1 trillion dollars. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
To close a recessionary gap of 2 trillion dollars with a spending multiplier of 2, total spending must increase by 1 trillion dollars. Therefore the correct answer is A)
If the recessionary gap is 2 trillion dollars and the multiplier is 2, then total spending would have to rise by 1 trillion dollars. The formula for closing a recessionary gap using the spending multiplier is:
Change in spending = Recessionary gap / Multiplier
Therefore, to close a 2 trillion dollars gap with a multiplier of 2, you would calculate:
Change in spending = 2 trillion dollars / 2 = 1 trillion dollars
This means that an increase in total spending by 1 trillion dollars would be required to close the recessionary gap. In summary, the correct answer is A. 1 trillion dollars.
Thank you for reading the article If the recessionary gap is 2 trillion dollars and the multiplier is 2 then total spending would have to rise by A 1 trillion dollars. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!
- You are operating a recreational vessel less than 39 4 feet long on federally controlled waters Which of the following is a legal sound device
- Which step should a food worker complete to prevent cross contact when preparing and serving an allergen free meal A Clean and sanitize all surfaces
- For one month Siera calculated her hometown s average high temperature in degrees Fahrenheit She wants to convert that temperature from degrees Fahrenheit to degrees
Rewritten by : Jeany
