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Author Question: Which of the following events will cause a reduction in equilibrium output? A) an increase in the ... (Read 72 times)

ssal

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  • Posts: 572
on: Jun 30, 2018
Which of the following events will cause a reduction in equilibrium output?
 
  A) an increase in the marginal propensity to save
  B) an increase in taxes
  C) a reduction in the marginal propensity to consume
  D) all of the above
  E) none of the above

Question 2

Based on our understanding of the paradox of saving, we know that a reduction in the desire to save will cause
 
  A) an increase in equilibrium GDP.
  B) a reduction in GDP.
  C) an increase in the desire to invest.
  D) no change in equilibrium GDP.
  E) a permanent reduction in the level of saving.


zoeyesther

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


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