Author Question: Ceteris paribus, deficit spending results in higher interest rates, which can A) ultimately have ... (Read 68 times)

swpotter12 · **on:** Jun 30, 2018

Ceteris paribus, deficit spending results in higher interest rates, which can

A) ultimately have a positive impact on productivity gains and society's standard of living.
B) accelerate growth in investment spending.
C) crowd out private investment.
D) increase the wealth of future generations.

Question 2

Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the marginal propensity to consume?

A) 0.7 B) 1 C) 0.3 D) 0