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

Author Question: If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the ... (Read 31 times)

nmorano1

  • Hero Member
  • *****
  • Posts: 598
on: Jun 30, 2018
If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model, then the marginal propensity to save must be
 
  a. .25.
  b. 1.5.
  c. .5.
  d. 1/3.
  e. 2/3.

Question 2

If people increase their expected rate of interest, the speculative demand for money curve will _____ and money supply will _____.
 
  a. shift downward, remain unchanged.
  b. shift upward; remain unchanged.
  c. not be affected; shifts upward.
  d. not be affected; not be affected.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcni194

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


nmorano1

  • Member
  • Posts: 598
Reply 2 on: Jun 30, 2018
:D TYSM

6ana001

  • Member
  • Posts: 311
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Distribution of the Income of Americans Distribution of the Income of Americans
Relationship between Income Inequality and Sociopolitical Instability Relationship between Income Inequality and Sociopolitical Instability
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Write the acidic equilibrium equation for HC₆H₅O. Write the acidic equilibrium equation for HC₆H₅O.
The Hardy–Weinberg equilibrium for two autosomal alleles. The Hardy–Weinberg equilibrium for two autosomal alleles.
Video: Osteoporosis

For a complete list of videos, visit our video library