Author Question: If the MPC = .80, and investment rises from 100 to 150, real GDP will increase by: a. 50. b. 125. ... (Read 35 times)

yoroshambo · **on:** Jun 30, 2018

If the MPC = .80, and investment rises from 100 to 150, real GDP will increase by:
a. 50.
b. 125.
c. 20.
d. 250.
e. 200.

Question 2

The Federal Reserve System:
a. was created by and is owned by the government.
b. pursues independent fiscal policy at the behest of Congress.
c. never acts to control inflation.
d. pursues an independent monetary policy which can conflict with the government's economic policy.
e. only acts to lower taxes and increase spending when there are recessionary tendencies in the economy.