Author Question: Suppose business decision makers become more optimistic about the future and, as a result, increase ... (Read 48 times)

Alainaaa8

  • Hero Member
  • *****
  • Posts: 576
Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by 20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:
 a. 15 billion.
  b. 20 billion.
  c. 50 billion.
  d. 80 billion.

Question 2

Which one of the following is the largest component of the money supply (M1) in the United States?
 a. Checkable deposits.
  b. Gold certificates.
  c. Credit cards and traveler's checks.
  d. Federal Reserve notes.



blfontai

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

d

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

For a complete list of videos, visit our video library