Author Question: Suppose equilibrium real GDP is currently at 800 billion and investment is 100 billion. If an ... (Read 97 times)

clippers! · **on:** Jun 30, 2018

Suppose equilibrium real GDP is currently at 800 billion and investment is 100 billion. If an increase in the interest rate reduces investment from 100 billion to 75 billion, and the MPC is 0.8, the new level of equilibrium real GDP will be:
a. 500 billion.
b. 600 billion.
c. 675 billion.
d. 775 billion.
e. 800 billion.

Question 2

What is the length of the term of the members of the Board of Governors of the Federal Reserve System?
a. Four years.
b. Six years.
c. Fourteen years.
d. Life or until the member resigns.