« previous next »

Author Question: Assume the marginal propensity to consume (MPC) is 0.80 and the government increases taxes by 100 ... (Read 88 times)

moongchi

  • Hero Member
  • *****
  • Posts: 516
on: Jun 30, 2018
Assume the marginal propensity to consume (MPC) is 0.80 and the government increases taxes by 100 billion. The aggregate demand curve will shift to the:
 a. left by 80 billion.
  b. right by 200 billion.
  c. right by 400 billion.
  d. left by 400 billion.

Question 2

According to the Monetarist view, the impact of expansionary monetary policy will be:
 a. the same in the long run as in the short run.
  b. the same regardless of whether the effects of the policy are anticipated or unanticipated.
  c. a higher price level (inflation).
  d. a decrease in short-run prices and an increase in long-run prices.


Bison

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
The averaging of an auditory evoked potential. Averaging increases the signal-to-noise ratio. The averaging of an auditory evoked potential. Averaging increases the signal-to-noise ratio.
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Food Sources of Fiber Adults need to consume about 21 to 38 grams of fiber daily Food Sources of Fiber Adults need to consume about 21 to 38 grams of fiber daily
Nearly all the food that you consume originates on a farm Nearly all the food that you consume originates on a farm
American Government: Roots and Reform, 2009 Edition American Government: Roots and Reform, 2009 Edition
Video: Chloroplast Structure & Light Dependent Reactions (Photosystem 1 and 2 Cyclic Electron Flow)

For a complete list of videos, visit our video library