« previous next »

Author Question: When an economy is operating well below its full-employment capacity and the marginal propensity to ... (Read 91 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jun 30, 2018
When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 0.75, a 10 billion increase in investment spending will cause the equilibrium output to rise by:
 a. 5 billion.
  b. 10 billion.
  c. 20 billion.
  d. 40 billion.

Question 2

Which of the following is not a component of the M1 money supply?
 a. Demand deposits.
  b. Large-denomination (more than 100) bills.
  c. Interest-earning checking deposits.
  d. Outstanding balances on credit cards.


jesse.fleming

  • Sr. Member
  • ****
  • Posts: 301
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010 Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010
To cleanse an open wound, begin close to the wound and work outward in full or half circles. To cleanse an open wound, begin close to the wound and work outward in full or half circles.
Basic sliding effleurage using the palms of the hands provides full contact with the leg. Basic sliding effleurage using the palms of the hands provides full contact with the leg.
Psychologists measure basic memory capacity Psychologists measure basic memory capacity
What type of online info about a job candidate should employment mgmt consider when screening What type of online info about a job candidate should employment mgmt consider when screening
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ... Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...
Video: Secretin (inhibiting gastric acid secretion), Cholecystokinin (fat digestion) & Cholecystokinin

For a complete list of videos, visit our video library