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Author Question: The response of investment spending to an increase in the government budget deficit is called A) ... (Read 148 times)

sheilaspns

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The response of investment spending to an increase in the government budget deficit is called
 
  A) private dissaving. B) expansionary investment.
  C) income minus net taxes. D) crowding out.
 
  Figure 21-5

Question 2

If disposable income falls by 50 billion and consumption falls by 40 billion, then the slope of the consumption function is
 
  A) 1.20. B) 0.80. C) 0.70. D) 0.10.



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ttt030911

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Answer to Question 1

D

Answer to Question 2

B





 

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