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Author Question: If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the ... (Read 34 times)

nmorano1

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on: Jun 30, 2018
If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model, then the marginal propensity to save must be
 
  a. .25.
  b. 1.5.
  c. .5.
  d. 1/3.
  e. 2/3.

Question 2

If people increase their expected rate of interest, the speculative demand for money curve will _____ and money supply will _____.
 
  a. shift downward, remain unchanged.
  b. shift upward; remain unchanged.
  c. not be affected; shifts upward.
  d. not be affected; not be affected.


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mcni194

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


nmorano1

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

parker125

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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