Author Question: Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume ... (Read 65 times)

tth · **on:** Jun 30, 2018

Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
a. MPC 1.
b. (MPC 1) / MPC.
c. 1 / MPC.
d. 1 / (1 MPC).

Question 2

Which one of the following is part of the M2 definition of the money supply, but not part of M1?
a. Checkable deposits.
b. Currency held in banks.
c. Currency in circulation.
d. Small time deposits of less than 100,000.