Author Question: If net exports increase by 10 billion and the MPC = 0.6, the resulting increase in the consumption ... (Read 54 times)

javeds · **on:** Jun 30, 2018

If net exports increase by 10 billion and the MPC = 0.6, the resulting increase in the consumption component of AD is:
a. 25 billion.
b. 15 billion.
c. 6 billion.
d. 4 billion.

Question 2

Suppose the National Bank has total cash reserves of 2,000 and has 5,000 in total deposits. If its total excess reserves are 1,250, then the reserve requirement is equal to:
a. 25 percent.
b. 15 percent.
c. 10 percent.
d. 5 percent.
e. 20 percent.