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Author Question: If net exports increase by 10 billion and the MPC = 0.6, the resulting increase in the consumption ... (Read 21 times)

javeds

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on: Jun 30, 2018
If net exports increase by 10 billion and the MPC = 0.6, the resulting increase in the consumption component of AD is:
 a. 25 billion.
  b. 15 billion.
  c. 6 billion.
 d. 4 billion.

Question 2

Suppose the National Bank has total cash reserves of 2,000 and has 5,000 in total deposits. If its total excess reserves are 1,250, then the reserve requirement is equal to:
 a. 25 percent.
  b. 15 percent.
  c. 10 percent.
  d. 5 percent.
  e. 20 percent.


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bimper21

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

b

Answer to Question 2

b


javeds

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Reply 2 on: Jun 30, 2018
Gracias!

phuda

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Reply 3 on: Yesterday
Excellent

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