« previous next »

Author Question: If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5. a. ... (Read 70 times)

EAugust

  • Hero Member
  • *****
  • Posts: 550
on: Jun 30, 2018
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

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
Laboratory mice demonstrate that genetic differences can have profound effects on the propensity to Laboratory mice demonstrate that genetic differences can have profound effects on the propensity to
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
Increase in total spending in presidential campaigns, 1976-2020 Increase in total spending in presidential campaigns, 1976-2020
Video: Definition of heart rate

For a complete list of videos, visit our video library