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Author Question: If government spending increased by 100 billion and the MPS within the economy was 0.25, what would ... (Read 77 times)

HCHenry

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on: Jun 30, 2018
If government spending increased by 100 billion and the MPS within the economy was 0.25, what would be the total impact on real GDP?
 a. 25 billion increase
 b. 75 billion increase
 c. 133 billion increase
  d. 400 billion increase

Question 2

Identify the correct definition of liquidity.
 a. The availability of credit in the form of money is known as liquidity.
  b. The ability of money to be a store of value is known as liquidity.
  c. The difference between real and nominal money values is known as liquidity.
  d. The ability of an asset to be easily converted into money is known as liquidity.
  e. The ability of an asset to be universally accepted as a means of exchange is known as liquidity.


aburgess

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

d

Answer to Question 2

d


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HCHenry

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Reply #2 on: Jun 30, 2018
Thank you


aburgess

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Reply #3 on: Jun 30, 2018
No problemo


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