« previous next »

Author Question: In the Keynesian model, everything else equal, a higher level of income a. increases money demand ... (Read 57 times)

hubes95

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
In the Keynesian model, everything else equal, a higher level of income
 
  a. increases money demand and reduces the interest rate.
  b. increases money demand and increases the interest rate.
  c. increases savings and decreases the interest rate.
  d. increases investment and has no effect on the interest rate.
  e. both b and c.

Question 2

In the simple Keynesian model, if the equilibrium level of income is 300 billion, the MPC is 0.75, and government expenditures increase by 20 billion. What is the new equilibrium level of income?
 
  a. 320 billion
  b. 380 billion
  c. 220 billion
  d. 520 billion


Jevvish

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Eye Model Eye Model
Critical Thinking Model Critical Thinking Model
Although average brain size increases gradually though time in H. erectus, individuals with small br Although average brain size increases gradually though time in H. erectus, individuals with small br
Model of the purinosome Model of the purinosome
Classic Supply - Demand Curve Classic Supply - Demand Curve
Intergenerational Income Mobility in the United States Intergenerational Income Mobility in the United States
Video: Plant Defense Mechanisms from Pathogens

For a complete list of videos, visit our video library