Author Question: Which of the following increases U.S. aggregate demand? a. a lower price level, increasing ... (Read 55 times)

audie · **on:** Jun 30, 2018

Which of the following increases U.S. aggregate demand?
a. a lower price level, increasing citizen's real wealth
b. a lower price level, reducing interest rates
c. a lower price level, increasing exports and decreasing imports
d. None of the above

Question 2

In a closed economy that does not have international trade, the spending multiplier equals _____.
a. 1/MPS
b. 1/MPC
c. 1/(MPC-1)
d. 1/(1-MPS)
e. 1/(1+MPS)