The economic way of thinking will help you A) make decisions ...

[Beheh]

The economic way of thinking will help you
 
  A) make decisions in financing your home.
  B) decide whether the U.S. government should encourage or discourage immigration.
  C) make better decisions concerning your education.
  D) all of the above

Question 2

Calculate the value of the government purchases multiplier if the marginal propensity to consume equals 0.8, the tax rate equals 0.2, and the marginal propensity to import equals 0.05.
 
  What will be an ideal response?

[Sarahjh]

Answer to Question 1

D

Answer to Question 2

Government purchases multiplier = 1 / 1 - (0.8(1 - 0.2 ) - 0.05 ) = 2.44

[Beheh]

Excellent

[komodo7]

Gracias!