The equilibrium level of real GDP is 1,000 . the target ...

[folubunmi]

The equilibrium level of real GDP is 1,000 . the target full-employment level of real GDP is 1,500, and the marginal propensity to consume is 0.75 . The target can be reached if government spending is:
 a. increased by 100 billion.
  b. increased by 125 billion.
  c. increased by 500 billion.
  d. held constant.

Question 2

Money is said to be liquid because it is immediately available to spend for goods.
 a. True
  b. False
  Indicate whether the statement is true or false

[cuttiesgirl16]

Answer to Question 1

b

Answer to Question 2

True

[folubunmi]

Gracias!

[Sarahjh]

Excellent