« previous next »

Author Question: The larger the MPC: a. the smaller the multiplier. b. the smaller the effect of a given increase in ... (Read 116 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
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

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

e


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

The enhancement effect observed by Emerson. The enhancement effect observed by Emerson.
Although large, the cougar is more closely related to smaller felines. Although large, the cougar is more closely related to smaller felines.
Habituation to the Aversive Effect of the Odor of Pups Habituation to the Aversive Effect of the Odor of Pups
Does Intelligence Increase with Brain Size? Does Intelligence Increase with Brain Size?
The Greenhouse Effect The Greenhouse Effect
Effect of Phosphate Pollution Effect of Phosphate Pollution
Video: Adolescent Diabetes

For a complete list of videos, visit our video library