This topic contains a solution. Click here to go to the answer

Author Question: If the government decides to spend an extra 5 billion on fighter jets that they would otherwise have ... (Read 29 times)

naturalchemist

  • Hero Member
  • *****
  • Posts: 542
If the government decides to spend an extra 5 billion on fighter jets that they would otherwise have spent on road construction, and the MPC = 0.75, what is the effect on AD?
 a. It has no effect.
 b. It increases by 5 billion.
  c. It increases by 15 billion.
  d. It increases by 20 billion.

Question 2

Suppose a bank has demand deposits of 2,500, excess reserves of 125, and a reserve requirement of 25 percent. What is the loss in the money expansion process of the whole banking system if the bank decides to lend out only 100?
 a. 100
  b. 150
  c. 200
  d. 400
  e. 500



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

perkiness

  • Sr. Member
  • ****
  • Posts: 348
Answer to Question 1

a

Answer to Question 2

a




naturalchemist

  • Member
  • Posts: 542
Reply 2 on: Jun 30, 2018
:D TYSM


ashely1112

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

For a complete list of videos, visit our video library