This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following will cause consumption to increase and aggregate demand to shift to the left? ... (Read 13 times)

Deast7027

  • Hero Member
  • *****
  • Posts: 538
on: Jun 30, 2018
Which of the following will cause consumption to increase and aggregate demand to shift to the left?
 a. an optimistic business forecast of future income growth
  b. increased consumer wealth
 c. an increase in consumer confidence
 d. none of the above

Question 2

Imagine an economy that does not have international trade and is initially in equilibrium. Later the government increases the level of spending by 350 million because it received a gift from abroad. In this economy, only 65 cents of every dollar is spent, and the rest is saved. Calculate the value of the spending multiplier for this economy.
 a. 2.86
  b. 0.286
  c. 1.54
  d. 0.154
  e. 0.35


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

a


Deast7027

  • Hero Member
  • *****
  • Posts: 538
Reply #2 on: Jun 30, 2018
Thank you


jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Palpating the Apical Impulse with the Patient on the Left Side Palpating the Apical Impulse with the Patient on the Left Side
A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher. A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher.
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
identical (left) and fraternal (right) twins identical (left) and fraternal (right) twins
A land snail (Helix aspersa) with the opening that leads to its lung visible at the left. A land snail (Helix aspersa) with the opening that leads to its lung visible at the left.
Typical leaf structure of eudicots (left) and monocots (right). Typical leaf structure of eudicots (left) and monocots (right).
Video: Osmosis - water transport

For a complete list of videos, visit our video library