If a fall in investment demand of 100 units causes equilibrium ...

[nmorano1]

If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model, then the marginal propensity to save must be
 
  a. .25.
  b. 1.5.
  c. .5.
  d. 1/3.
  e. 2/3.

Question 2

If people increase their expected rate of interest, the speculative demand for money curve will _____ and money supply will _____.
 
  a. shift downward, remain unchanged.
  b. shift upward; remain unchanged.
  c. not be affected; shifts upward.
  d. not be affected; not be affected.

[mcni194]

Answer to Question 1

D

Answer to Question 2

A

[nmorano1]

Thanks for the timely response, appreciate it

[tranoy]

Gracias!