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

Author Question: To achieve a 500 billion decrease in AD, if the MPC is 0.8, what decrease in government purchases ... (Read 146 times)

Jramos095

  • Hero Member
  • *****
  • Posts: 528
on: Jun 30, 2018
To achieve a 500 billion decrease in AD, if the MPC is 0.8, what decrease in government purchases would be called for?
 a. 100 billion
  b. 400 billion
  c. 500 billion
  d. 625 billion

Question 2

Assume that the reserve requirement is 25 percent and that the amount of checkable deposits in Federal Bank is 200 . If the bank has loaned out 120, then the bank's excess reserves must equal:
 a. 0.
  b. 25.
  c. 30.
  d. 80.
  e. 225.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cegalasso

  • Sr. Member
  • ****
  • Posts: 295
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


Jramos095

  • Member
  • Posts: 528
Reply 2 on: Jun 30, 2018
:D TYSM

jojobee318

  • Member
  • Posts: 298
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

In the communication technique of collaborating, the nurse sends the message that the nurse and pati In the communication technique of collaborating, the nurse sends the message that the nurse and pati
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
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th
United States, southwestern and southern states are suffer from a significant decrease in rainfall United States, southwestern and southern states are suffer from a significant decrease in rainfall
Government Corruption versus GDP per Capita, 2009 Government Corruption versus GDP per Capita, 2009
Video: Carbon fixing adaptations Animation

For a complete list of videos, visit our video library