Author Question: The smaller the MPC: a. the smaller the fraction of an increase in AD due to an increase in ... (Read 103 times)

Charlie · **on:** Jun 30, 2018

The smaller the MPC:
a. the smaller the fraction of an increase in AD due to an increase in government purchases that is consumption.
b. the greater the fraction of an increase in AD due to an increase in government purchases that is consumption.
c. the greater the change in government purchases required to achieve a given change in AD.
d. (a) and (c)

Question 2

Outstanding U.S. dollar-denominated travelers' checks issued by non-bank institutions are not counted as part of the M1 money supply.
a. True
b. False
Indicate whether the statement is true or false