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Author Question: If households save 0.40 of each additional dollar of increased income and spend the rest, the ... (Read 176 times)

Arii_bell

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If households save 0.40 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
 
  A) 1.67.
  B) 2.5.
  C) 4.
  D) 6.

Question 2

The difference between the interest rate on loans to households and firms and the interest rate on completely safe assets is known as ________.
 
  A) the fed funds rate
  B) the discount rate
  C) asymmetric information
  D) the credit spread



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jamesnevil303

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Answer to Question 1

B

Answer to Question 2

D




Arii_bell

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


emsimon14

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

 

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