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

Author Question: If households save 0.40 of each additional dollar of increased income and spend the rest, the ... (Read 173 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jamesnevil303

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

B

Answer to Question 2

D




Arii_bell

  • Member
  • Posts: 596
Reply 2 on: Jun 30, 2018
Gracias!


mammy1697

  • Member
  • Posts: 341
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

For a complete list of videos, visit our video library