A. True in a dutch interenet auction the highest price wins
The answer would be A, Education
Answer:
B. It increased, but it less than doubled
Explanation:
Answer:
An increase in government spending of $300 billion and a tax cut of $300 billion will have <u>EQUAL</u> effects on the budget balance and <u>UNEQUAL</u> effects on real GDP.
Explanation:
Both actions will increase the budget deficit by $300 billion each.
But the total effect of government spending in the aggregate demand is determined by the government spending multiplier = 1/marginal propensity to save (MPS).
On the other hand, the effect of the tax cut will be determined by the marginal propensity to consume (MPC).