Author Question: If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5. a. ... (Read 69 times)

EAugust

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If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Assume a bank has total deposits of 100,000 and 20,000 is set aside to meet reserve requirements of the Fed. Its required reserve ratio is:
 a. 20,000 b. 20 percent.
  c. 0.2 percent. d. 1 percent.



mfedorka

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Answer to Question 1

True

Answer to Question 2

b



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