Author Question: Suppose business decision makers become more optimistic about the future and, as a result, increase ... (Read 50 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?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

For a complete list of videos, visit our video library