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Author Question: If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5. a. ... (Read 29 times)

EAugust

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

True

Answer to Question 2

b


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