In 2020, the Palestinian government decided to increase its expenditure due to COVID-19 outbreak by $0.7...
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In 2020, the Palestinian government decided to increase its expenditure due to COVID-19 outbreak by $0.7 billion. It is estimated that an increase in Palestinian income by $100 would increase consumption by $81. If the Palestinian GDP was expected to be $17 billion before the decision of the government, what will be the expected GDP after the decision to increase government expenditure? a. 13.32 O b. 16.14 O c. 20.68 O d. 17.70 O e. 17.86 In 2020, the Palestinian government decided to increase its expenditure due to COVID-19 outbreak by $0.7 billion. It is estimated that an increase in Palestinian income by $100 would increase consumption by $81. If the Palestinian GDP was expected to be $17 billion before the decision of the government, what will be the expected GDP after the decision to increase government expenditure? a. 13.32 O b. 16.14 O c. 20.68 O d. 17.70 O e. 17.86
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The question is referring to the concept of the multiplier effect in economics which suggests that a... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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