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Author Question: If households spend 0.75 of each additional dollar of increased income, the expenditure multiplier ... (Read 105 times)

moongchi

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on: Jun 30, 2018
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

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

B

Answer to Question 2

C


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