Author Question: An economic slowdown in Europe is likely to lead to a(n): a. decrease in U.S. exports and U.S. ... (Read 59 times)

iveyjurea · **on:** Jun 30, 2018

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