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Author Question: If MPC = 2/3, a decrease in government purchases of 10 billion will ultimately lead to: a. a 30 ... (Read 77 times)

SO00

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on: Jun 30, 2018
If MPC = 2/3, a decrease in government purchases of 10 billion will ultimately lead to:
 a. a 30 billion increase in aggregate demand.
  b. a 10 billion increase in aggregate demand.
  c. a 10 billion decrease in aggregate demand.
  d. a 30 billion decrease in aggregate demand.

Question 2

Suppose that Mr. Chopp withdraws 500 from his checking account. If the reserve requirement is 5 percent, what will be the maximum potential change in the money supply forthcoming from Mr. Chopp's transaction?
 a. 10,000
  b. 500
  c. 0
  d. -500
  e. -10,000


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parker125

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

e


SO00

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

nathang24

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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