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Author Question: In the figure above, the shift in the supply of loanable funds curve from SLF1 to SLF2 could be the ... (Read 40 times)

melina_rosy

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on: Jun 29, 2018
In the figure above, the shift in the supply of loanable funds curve from SLF1 to SLF2 could be the result of
 
  A) an increase in expected rate of profit.
  B) a decrease in disposable income.
  C) an increase in expected future disposable income.
  D) an increase in the real interest rate.
  E) a decrease in wealth

Question 2

Suppose an economy has no income taxes or imports. If the MPC is 0.75, what does the expenditure multiplier equal?
 
  What will be an ideal response?


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ansleighelindsey

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Reply #1 on: Jun 29, 2018
Answer to Question 1

E

Answer to Question 2

The expenditure multiplier equals , so in this case it equals = = 4.0.


melina_rosy

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

ultraflyy23

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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