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

Author Question: Which of the following will cause consumption to increase and aggregate demand to shift to the left? ... (Read 58 times)

Deast7027

  • Hero Member
  • *****
  • Posts: 538
on: Jun 30, 2018
Which of the following will cause consumption to increase and aggregate demand to shift to the left?
 a. an optimistic business forecast of future income growth
  b. increased consumer wealth
 c. an increase in consumer confidence
 d. none of the above

Question 2

Imagine an economy that does not have international trade and is initially in equilibrium. Later the government increases the level of spending by 350 million because it received a gift from abroad. In this economy, only 65 cents of every dollar is spent, and the rest is saved. Calculate the value of the spending multiplier for this economy.
 a. 2.86
  b. 0.286
  c. 1.54
  d. 0.154
  e. 0.35


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

a


Deast7027

  • Hero Member
  • *****
  • Posts: 538
Reply #2 on: Jun 30, 2018
Thank you


jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Cellular mechanisms that increase protein diversity Cellular mechanisms that increase protein diversity
Left sided heart failure Left sided heart failure
The wide distribution of left hemisphere sites where cortical stimulation either blocked speech or ... The wide distribution of left hemisphere sites where cortical stimulation either blocked speech or ...
Per capita annual alcohol consumption (2005) Per capita annual alcohol consumption (2005)
How to find the phase shift from a graph? How to find the phase shift from a graph?
Didinium, a barrel-shaped ciliate with tufts of cilia, catching (left) and engulfing (right) Paramec Didinium, a barrel-shaped ciliate with tufts of cilia, catching (left) and engulfing (right) Paramec
Video: Acid-base imbalances - compensation of metabolic acidosis and alkalosis

For a complete list of videos, visit our video library