Use the aggregate expenditures model and assume the marginal ...

[tichca]

Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . A decrease in government spending of 1 billion would result in a decrease in GDP of:
 a. 0.
  b. 0.9 billion.
  c. 1.0 billion.
  d. 9.0 billion.
  e. 10.0 billion.

Question 2

A majority of the commercial banks in the United States are not members of the Fed.
 a. True
  b. False
  Indicate whether the statement is true or false

[mtmmmmmk]

Answer to Question 1

e

Answer to Question 2

True

[tichca]

Excellent

[Missbam101]

Thanks for the timely response, appreciate it