[Answered] An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending ...

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Author Question: An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending ... (Read 53 times)

sjones

Hero Member
Posts: 520

on: Jun 30, 2018

An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending multiplier.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Banks normally hold few excess reserves because this practice is:
a. subject to an excess reserves tax.
b. not profitable.
c. against Fed policy.
d. illegal.

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Moriaki

Sr. Member
Posts: 341

Reply #1 on: Jun 30, 2018

Answer to Question 1

False

Answer to Question 2

b

sjones

Hero Member
Posts: 520

Reply #2 on: Jun 30, 2018

Thank you

Moriaki

Sr. Member
Posts: 341

Reply #3 on: Jun 30, 2018

Happy to help you

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Author Question: An increase in the marginal propensity to consume (MPC) leads to a decrease in the spending ... (Read 53 times)

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