An economic slowdown in Europe is likely to lead to a(n): a. ...

[iveyjurea]

An economic slowdown in Europe is likely to lead to a(n):
 a. decrease in U.S. exports and U.S. aggregate demand.
  b. increase in U.S. exports and U.S. aggregate demand.
  c. decrease in U.S. imports and U.S. aggregate demand.
  d. increase in U.S. imports and U.S. aggregate demand.

Question 2

Assume that the marginal propensity to consume equals 0.75 and the marginal propensity to import equals 0.10 . By how much does spending on domestic goods increase if income increases by 300?
 a. 195
  b. 225
  c. 30
  d. 300
  e. 75

[josephsuarez]

Answer to Question 1

a

Answer to Question 2

a

[iveyjurea]

Excellent

[mcabuhat]

Gracias!