In the basic Keynesian model a decrease in transfer payments A reduces short

# In the basic keynesian model a decrease in transfer

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130.In the basic Keynesian model a decrease in transfer payments: A.reduces short-run equilibrium output. B. increases short-run equilibrium output. C. reduces potential output. D. increases potential output. AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 21 #130 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy

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131.In the short-run Keynesian model, if the mpc equals 0.7, then to decrease consumption spending by \$5 billion at any output level, then taxes must be: AACSB: Analytical Skills Blooms: Application Frank - Chapter 21 #131 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
132.In the short-run Keynesian model, if the mpc equals 0.6, then to increase planned aggregate spending by \$10 billion at any output level, government spending must be increased by _____ or net taxes must be decreased by _____. AACSB: Analytical Skills Blooms: Application Frank - Chapter 21 #132 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy

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133.In the short-run Keynesian model, if the mpc equals 0.9, then to decrease planned aggregate spending by \$15 billion at any output level, government spending must be decreased by _____ or net taxes must be increased by _____. AACSB: Analytical Skills Blooms: Application Frank - Chapter 21 #133
Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy

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