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Author Question: When an economy is operating well below its full-employment capacity and the marginal propensity to ... (Read 45 times)

SO00

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  • 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
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  • Posts: 301
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

d


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