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

Author Question: Which of the following will not cause consumption, and as a result, aggregate demand, to increase? ... (Read 16 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Jun 30, 2018
Which of the following will not cause consumption, and as a result, aggregate demand, to increase?
 a. an optimistic business forecast of future income growth
  b. a tax cut
 c. an increase in consumer confidence
 d. a tax increase

Question 2

Imagine an economy that does not have international trade and is initially in equilibrium. Later the government increases the level of spending by 350 million because it received a gift from abroad. In this economy, only 65 cents of every dollar is spent, and the rest is saved. What is the marginal propensity to save for this economy?
 a. 0.5
  b. 0.25
  c. 0.65
  d. 0.35
  e. Cannot be determined


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dlook33

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

d


littleanan

  • Member
  • Posts: 575
Reply 2 on: Jun 30, 2018
Wow, this really help

frankwu0507

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

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

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Past and Future Use of Aggregate Past and Future Use of Aggregate
Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal
Mean scores for Erikson’s stage V (Identity) for two cohorts. Scores for both cohorts increase ... Mean scores for Erikson’s stage V (Identity) for two cohorts. Scores for both cohorts increase ...
A high-performance aftermarket air filter often can increase airflow into the engine for more ... A high-performance aftermarket air filter often can increase airflow into the engine for more ...
Global energy consumption is rising rapidly Global energy consumption is rising rapidly
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Video: Major Elements in Biological Molecules: Nucleic acids

For a complete list of videos, visit our video library