This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A 100 billion increase in government purchases would: a. increase AD by 500 billion if MPC = 0.8. ... (Read 113 times)

student77

  • Hero Member
  • *****
  • Posts: 567
on: Jun 30, 2018
A 100 billion increase in government purchases would:
 a. increase AD by 500 billion if MPC = 0.8.
  b. decrease AD by 300 billion if MPC = 2/3.
  c. decrease AD by 200 billion if MPC = 0.9.
  d. decrease AD by 40 billion if MPC = 0.4.

Question 2

If a bank's required reserves equal 270,000 . Suppose the bank holds no excess reserves, and the reserve requirement is equal to 18 percent, what is the value of the bank's total deposits?
 a. 900,000
  b. 1,500,000
  c. 48,000
  d. 486,000
  e. 150,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

wilsonbho

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

b


student77

  • Member
  • Posts: 567
Reply 2 on: Jun 30, 2018
Wow, this really help

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Uranus revolves around the Sun once every 84 Earth years. Its average distance from the Sun is rough Uranus revolves around the Sun once every 84 Earth years. Its average distance from the Sun is rough
This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Presidential success under unified and divided government, from Eisenhower to trump Presidential success under unified and divided government, from Eisenhower to trump
Increase in total spending in presidential campaigns, 1976-2020 Increase in total spending in presidential campaigns, 1976-2020
Video: Bone cells and tissues - tissue composition and cells

For a complete list of videos, visit our video library