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Author Question: The larger the MPC: a. the smaller the multiplier. b. the smaller the effect of a given increase in ... (Read 61 times)

dollx

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on: Jun 30, 2018
The larger the MPC:
 a. the smaller the multiplier.
 b. the smaller the effect of a given increase in government purchases on consumption purchases.
  c. the larger the effect of business taxes which reduce investment on aggregate demand.
 d. the less powerful changes in individual taxes will be in changing aggregate demand.

Question 2

The quantity theory of money asserts that:
 a. changes in nominal GDP are inversely related to changes in the velocity of money.
  b. changes in money supply are positively related to changes in the velocity of money.
  c. changes in the money supply are unrelated to changes in the price level.
  d. changes in the output level are unrelated to changes in the price level.
  e. changes in the money supply are directly related to changes in nominal GDP.


lindahyatt42

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

c

Answer to Question 2

e


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