Author Question: If the marginal propensity to save is 0.1, then a 10 million decrease in disposable income will ... (Read 110 times)

kamilo84 · **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.