If households spend 0.75 of each additional dollar of increased ...

[moongchi]

If households spend 0.75 of each additional dollar of increased income, the expenditure multiplier will be
 
  A) 1.33.
  B) 4.
  C) 5.
  D) 7.5.

Question 2

Households in the United States more completely smooth out expenditures on
 
  A) durable goods and nondurable goods than on services.
  B) durable goods than on nondurable goods and services.
  C) nondurable goods and services than on durable goods.
  D) services and durable goods; nondurable goods.

[vickyvicksss]

Answer to Question 1

B

Answer to Question 2

C