« previous next »

Author Question: If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5. a. ... (Read 65 times)

EAugust

  • Hero Member
  • *****
  • Posts: 550
on: Jun 30, 2018
If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Assume a bank has total deposits of 100,000 and 20,000 is set aside to meet reserve requirements of the Fed. Its required reserve ratio is:
 a. 20,000 b. 20 percent.
  c. 0.2 percent. d. 1 percent.


mfedorka

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Laboratory mice demonstrate that genetic differences can have profound effects on the propensity to Laboratory mice demonstrate that genetic differences can have profound effects on the propensity to
Food Sources of Fiber Adults need to consume about 21 to 38 grams of fiber daily Food Sources of Fiber Adults need to consume about 21 to 38 grams of fiber daily
The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected
Nearly all the food that you consume originates on a farm Nearly all the food that you consume originates on a farm
Growth of Government Spending, 1870–2009 Growth of Government Spending, 1870–2009
Researchers and Research Spending, 2009 Researchers and Research Spending, 2009
Video: Asthma Treatment

For a complete list of videos, visit our video library