« previous next »

Author Question: The larger the MPC: a. the smaller the multiplier. b. the smaller the effect of a given increase in ... (Read 97 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?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

When using forearm pressure on the top of the shoulder, push with your back foot to increase your ... When using forearm pressure on the top of the shoulder, push with your back foot to increase your ...
Reduced mobility in late adulthood often results in more limited activities and smaller social ... Reduced mobility in late adulthood often results in more limited activities and smaller social ...
Pasteur effect Pasteur effect
The Effect of Using PPP on Comparisons of GDP The Effect of Using PPP on Comparisons of GDP
The Dose-Effect Relationship, Showing (A) Drug Potency and (B) Drug Efficacy (Or Effectiveness) The Dose-Effect Relationship, Showing (A) Drug Potency and (B) Drug Efficacy (Or Effectiveness)
The effect of gene–environment interaction The effect of gene–environment interaction
Video: Glucose anabolism reactions: Glycogenolysis and Gluconeogenesis

For a complete list of videos, visit our video library