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Author Question: When drawn against current income, the slope of the Cd (r) + Id (r) + G curve is equal to the ... (Read 49 times)

jCorn1234

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on: Jun 30, 2018
When drawn against current income, the slope of the Cd (r) + Id (r) + G curve is equal to the marginal
 
  A) product of capital.
  B) product of labor.
  C) propensity to consume.
  D) propensity to save.

Question 2

If policy makers desire a 30 increase in output and the consumption function is C = 100 + .75(Y-T), then they must
 
  a. increase government spending by 8.
  b. increase taxes by 10.
  c. cut government spending and taxes by 10.
  d. decrease taxes by 10.


ebonylittles

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

C

Answer to Question 2

C


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