Author Question: If the MPC is 2/3, then 2/3 of the effect of an increase in government purchases on aggregate demand ... (Read 91 times)

FButt · **on:** Jun 30, 2018

If the MPC is 2/3, then 2/3 of the effect of an increase in government purchases on aggregate demand will come from increased consumption.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is not true about a special drawing right (SDR)?
a. The SDR is a composite currency.
b. The value of the SDR is an average of the values of the currencies of major industrial countries.
c. The SDR was created in 1980 by the World Bank.
d. The SDR is an international reserve asset.
e. The SDR is used to settle international debts.