This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: To achieve a 500 billion decrease in AD, if the MPC is 0.8, what decrease in government purchases ... (Read 148 times)

Jramos095

  • Hero Member
  • *****
  • Posts: 528
on: Jun 30, 2018
To achieve a 500 billion decrease in AD, if the MPC is 0.8, what decrease in government purchases would be called for?
 a. 100 billion
  b. 400 billion
  c. 500 billion
  d. 625 billion

Question 2

Assume that the reserve requirement is 25 percent and that the amount of checkable deposits in Federal Bank is 200 . If the bank has loaned out 120, then the bank's excess reserves must equal:
 a. 0.
  b. 25.
  c. 30.
  d. 80.
  e. 225.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cegalasso

  • Sr. Member
  • ****
  • Posts: 295
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


Jramos095

  • Member
  • Posts: 528
Reply 2 on: Jun 30, 2018
Gracias!

bblaney

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

This chart illustrates the “drip down” model of government. In this, politics is formed by the soc This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
When the engine is cold and before the oxygen sensor is hot enough to achieve closed-loop, the ... When the engine is cold and before the oxygen sensor is hot enough to achieve closed-loop, the ...
Government Corruption versus GDP per Capita, 2009 Government Corruption versus GDP per Capita, 2009
Government in America: People, Politics, and Policy, AP Government in America: People, Politics, and Policy, AP
Decrease in mean haplotype heterozygosity Decrease in mean haplotype heterozygosity
Video: Pressure Flow Model Animation

For a complete list of videos, visit our video library