Author Question: If the consumption function is defined as C = 7,250 + 0.8Y, what is the multiplier? A) 0.2 B) 0.8 ... (Read 41 times)

leo leo

  • Hero Member
  • *****
  • Posts: 566
If the consumption function is defined as C = 7,250 + 0.8Y, what is the multiplier?
 
  A) 0.2 B) 0.8 C) 1.25 D) 5

Question 2

In 2008, the Treasury and Federal Reserve took action to save large financial firms such as Bear Stearns and AIG from failing. Which of the following is one reason why these measures were taken?
 
  A) The Fed and the Treasury wanted to allow Freddie Mac and Fannie Mae more time to buy the firms before they went bankrupt.
  B) The Emergency Economic Stabilization Act required the Fed and the Treasury to provide financial assistance to firms that participated in regular open market actions with the Fed.
  C) The bankruptcy of a large financial firm would force the firm to sell its holdings of securities, which could cause other firms that hold these securities to also fail.
  D) The failure of these firms would have forced the Fed to increase interest rates, which could have led to a severe recession.



krakiolit

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

D

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

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

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

For a complete list of videos, visit our video library