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Author Question: An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending ... (Read 46 times)

sjones

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on: Jun 30, 2018
An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending multiplier.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Banks normally hold few excess reserves because this practice is:
 a. subject to an excess reserves tax.
  b. not profitable.
  c. against Fed policy.
  d. illegal.


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Moriaki

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

False

Answer to Question 2

b


sjones

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Reply #2 on: Jun 30, 2018
Thank you :)


Moriaki

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Reply #3 on: Jun 30, 2018
Happy to help you


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