This topic contains a solution. Click here to go to the answer

Author Question: If the marginal propensity to consume = 0.75, then: a. the marginal propensity to save = 0.75. b. ... (Read 76 times)

FButt

  • Hero Member
  • *****
  • Posts: 519
If the marginal propensity to consume = 0.75, then:
 a. the marginal propensity to save = 0.75.
  b. the marginal propensity to save = 1.33.
  c. the marginal propensity to save = 0.20.
  d. the marginal propensity to save = 0.25.
  e. since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.

Question 2

As the size of a nation's outstanding debt gets larger and larger relative to the size of the economy:
 a. eventually it will become difficult for the country to borrow in global credit markets.
  b. the country will have to pay higher real interest rates in order to induce investors to purchase its bonds.
  c. at some point, the country will be more or less forced to bring spending into line with revenues in order to maintain the confidence of investors.
  d. all of these are correct.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kbennett34

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

d

Answer to Question 2

d




FButt

  • Member
  • Posts: 519
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

For a complete list of videos, visit our video library