Author Question: In the aggregate expenditures model, assume that the MPC is 0.75 . An increase in investment ... (Read 65 times)

SGallaher96 · **on:** Jun 30, 2018

In the aggregate expenditures model, assume that the MPC is 0.75 . An increase in investment spending of 6 billion would produce an ultimate increase in real GDP of:
a. 0.25 billion.
b. 0.75 billion.
c. 12 billion.
d. 24 billion.

Question 2

M2 is equal to M1 plus:
a. savings deposits, money market deposit accounts, small time deposits, and eurodollars.
b. savings deposits, money market deposit accounts, money market mutual funds, and eurodollars.
c. small time deposits, money market deposit accounts, money market mutual funds, and eurodollars.
d. savings deposits and small time deposits of less than 100,000.
e. money market mutual funds, money market deposit accounts, savings deposits, large time deposits, and repurchase agreements.