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Author Question: If households save 0.40 of each additional dollar of increased income and spend the rest, the ... (Read 185 times)

Arii_bell

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on: Jun 30, 2018
If households save 0.40 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
 
  A) 1.67.
  B) 2.5.
  C) 4.
  D) 6.

Question 2

The difference between the interest rate on loans to households and firms and the interest rate on completely safe assets is known as ________.
 
  A) the fed funds rate
  B) the discount rate
  C) asymmetric information
  D) the credit spread


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jamesnevil303

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

B

Answer to Question 2

D


Arii_bell

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

tranoy

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Reply 3 on: Yesterday
:D TYSM

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