Since 1990, the growth rate of real gross private investment in ...

[laurencescou]

Since 1990, the growth rate of real gross private investment in the United States has been relatively ________ and the growth rate of real personal consumption has been relatively ________.
 
  A) stable; stable
  B) stable; volatile
  C) volatile; stable
  D) volatile; volatile

Question 2

Suppose for every dollar change in household wealth, consumption expenditures change by 0.05.
 
  If real household wealth declines by 45 billion, potential GDP is 120 billion, and the multiplier effect for the second year after an expenditure shock is 1.1, what is the total change in output relative to potential for the second year? A) -1.28
  B) -1.73
  C) -2.06
  D) -5.78

[ilianabrrr]

Answer to Question 1

C

Answer to Question 2

C

[laurencescou]

Thank you

[ilianabrrr]

Happy to help you