Author Question: If the marginal propensity to save is 0.40, a 20 billion increase in investment spending would cause ... (Read 51 times)

yoroshambo · **on:** Jun 30, 2018

If the marginal propensity to save is 0.40, a 20 billion increase in investment spending would cause equilibrium output to:
a. increase by 50.
b. increase by 80.
c. decrease by 33.
d. decrease by 40.
e. decrease by 20.

Question 2

The Monetary Control Act of 1980:
a. created less competition among various financial institutions.
b. allowed fewer institutions to offer checking account services.
c. restricted savings and loan associations to long-term loans.
d. all of the above.
e. none of the above.