[Answered] The response of investment spending to an increase in the government budget deficit is called A) ...

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sheilaspns

Hero Member
Posts: 567

on: Jun 29, 2018

The response of investment spending to an increase in the government budget deficit is called

A) private dissaving. B) expansionary investment.
C) income minus net taxes. D) crowding out.

Figure 21-5

Question 2

If disposable income falls by 50 billion and consumption falls by 40 billion, then the slope of the consumption function is

A) 1.20. B) 0.80. C) 0.70. D) 0.10.

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ttt030911

Sr. Member
Posts: 315

Reply #1 on: Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

B

sheilaspns

Hero Member
Posts: 567

Reply #2 on: Jun 29, 2018

Thank you

ttt030911

Sr. Member
Posts: 315

Reply #3 on: Jun 29, 2018

Happy to help you

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