In an economic expansion, people used their charge cards to ...

[burchfield96]

In an economic expansion, people used their charge cards to purchase many goods. Now the economy is in a recession and people must use much of their reduced incomes to pay back debts. If employees manufacturing the goods people used to buy are laid off, they will suffer from:
 a. cyclical unemployment.
  b. structural unemployment.
  c. permanent unemployment.
  d. frictional unemployment.
  e. underemployment.

Question 2

If your income increases from 30,000 to 40,000 and your savings increases from 2,000 to 4,000 . your marginal propensity to save (MPS) is:
 a. 0.2.
  b. 0.4.
  c. 0.5.
  d. 0.8.
  e. 1.0.

[flexer1n1]

Answer to Question 1

a

Answer to Question 2

a