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Author Question: The argument that an increase in aggregate demand, as a result of an increase in government ... (Read 89 times)

s.tung

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on: Jun 30, 2018
The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called:
 a. the crowding out effect
 b. the Ricardian equivalence theorem
  c. the budget deficit effect
 d. the budget surplus effect

Question 2

If the money supply is 80 billion, the velocity of money is 5, and real GDP is 320 billion, then the price level equals:
 a. 51.20.
  b. 20.
  c. 4.
  d. 2.75.
  e. 1.25.


raenoj

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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

e


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s.tung

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Reply #2 on: Jun 30, 2018
Correct answers!


raenoj

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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