This topic contains a solution. Click here to go to the answer

Author Question: An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending ... (Read 91 times)

sjones

  • Hero Member
  • *****
  • Posts: 520
An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending multiplier.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Banks normally hold few excess reserves because this practice is:
 a. subject to an excess reserves tax.
  b. not profitable.
  c. against Fed policy.
  d. illegal.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Moriaki

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

False

Answer to Question 2

b





 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

For a complete list of videos, visit our video library