medium · CFA Level I econ
An analyst at Caldera Glass is evaluating a 100 million increase in government spending (G) intended to stimulate the economy. If the marginal propensity to consume (c) is 0.75 and the proportional tax rate (t) is 0.20, the resulting total increase in aggregate demand (AD) before any crowding out is closest to:
- 133 million
- 250 million
- 400 million
Sign up free to see the explanation and track your rank →
More CFA Level I econ practice
- If inflation is 2.40%, the exact real return is closest to:
- If Oakridge Capital achieves a nominal return of 5.00% and inflation is 2.50%, what is the
- Helion Rail's fixed income portfolio returns a nominal 5.20%. With inflation at 1.70%, the
- The profit per unit is:
- Which of the following describes the 'kinked demand curve' model in an oligopoly?
- The exact real rate is closest to:
- If they both follow a 'Maximin' strategy, the outcome will be:
- To find the EUR/JPY cross-rate, the analyst should: