If Americans' home equity falls substantially, it would ____ ...

[james9437]

If Americans' home equity falls substantially, it would ____ wealth and consumer confidence, ____ consumption, and ____ aggregate demand.
 a. increase, decrease, increase
  b. decrease, decrease, decrease
  c. increase, increase, increase
  d. increase, increase, decrease

Question 2

If equilibrium income is 500 billion, MPC = 0.8, MPI = 0.2 and autonomous government spending increases by 20 billion, the new equilibrium income will be _____.
 a. 600 billion
  b. 550 billion
  c. 525 billion
  d. 520 billion
  e. 500 billion

[Sierray]

Answer to Question 1

b

Answer to Question 2

b

[james9437]

YES! Correct, THANKS for helping me on my review

[strudel15]

Gracias!