Exam (elaborations)
Sophia (Macroeconomics) - Unit 3 Milestone
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Which statement below regarding monetary policy is false? Correct answer- Central banks aim for an inflation rate of 5%. What does the expression Y-(C+T) represent? Correct answer- Public savings If the MPC is 0.75 and the government increases spending by $100 billion, the effect this change has on the economy will be which of the following? Correct answer- There will be an increase of $400 billion in economic activity. Which of the following is NOT a way that the government finances fiscal policy? Correct answer- Printing money
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sophia macroeconomics unit 3 milestone
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