Question: Determine whether the statement is true, false or uncertain and the explain your Reasoning 1.An increase in saving of $100 billion, all of which is
Determine whether the statement is true, false or uncertain and the explain your Reasoning
1.An increase in saving of $100 billion, all of which is invested, will increase GDP.
2.A budget deficit implies that the government is engaged in expansionary fiscal policy
3.If company B completes a hostile take-over of Company C by purchasing all of C's shares, the expenditure is recorded in GDP.
4.The size of the autonomous expenditure multiplier in the simple economy with a simple government varies inversely with the Marginal Propensity to Consume.
5.In the simple economy with a simple government, the balanced budget multiplier is always equal to 1.
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