Author Question: An increase in government expenditures by 100 (unmatched by an increase in taxes) would, if the MPC ... (Read 23 times)

kfurse · **on:** Jun 30, 2018

An increase in government expenditures by 100 (unmatched by an increase in taxes) would, if the MPC = 0.90, result in an increase in real GDP by:
a. 1,000.
b. 9,000.
c. 900.
d. 190.
e. inadequate information is given.

Question 2

The main purpose of the Fed is to:
a. serve as the bankers' bank for member banks.
b. regulate interest rates.
c. print Federal Reserve Notes.
d. regulate financial institutions.
e. maintain the proper functioning of our money system.