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Author Question: If the marginal propensity to save is 0.1, then a 10 million decrease in disposable income will ... (Read 80 times)

kamilo84

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on: Jun 29, 2018
If the marginal propensity to save is 0.1, then a 10 million decrease in disposable income will
 
  A) increase consumption by 9 million. B) decrease consumption by 1 million.
  C) increase consumption by 1 million. D) decrease consumption by 9 million.

Question 2

With the federal funds rate near zero and the economy still struggling, In response to already low interest rates doing little to stimulate the economy, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep
 
  interest rates low. This policy is known as
  A) quantitative easing. B) securities-bubble deflating.
  C) contractionary monetary policy. D) inflation targeting.


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LP

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A


kamilo84

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Reply 2 on: Jun 29, 2018
Gracias!

6ana001

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Reply 3 on: Yesterday
Excellent

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