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

Author Question: Which of the following will cause consumption to increase and aggregate demand to shift to the left? ... (Read 53 times)

Deast7027

  • Hero Member
  • *****
  • Posts: 538
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
Answer to Question 1

d

Answer to Question 2

a





 

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

For a complete list of videos, visit our video library