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Author Question: If investment decreases by 20 billion and the MPC = 0.8, the resulting decrease in the consumption ... (Read 68 times)

mia

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  • Posts: 564
on: Jun 30, 2018
If investment decreases by 20 billion and the MPC = 0.8, the resulting decrease in the consumption component of AD is:
 a. 16 billion.
 b. 4 billion.
 c. 100 billion.
  d. 80 billion.

Question 2

If a bank has deposits worth 800,000 . total reserves worth 800,000 . and the reserve ratio of 0.20, what is the value of excess reserves?
 a. 620,000
  b. 1,000,000
  c. 1,160,000
  d. 640,000
  e. 160,000


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cpetit11

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

d

Answer to Question 2

d


mia

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

JaynaD87

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Reply 3 on: Yesterday
Excellent

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