Author Question: If the marginal propensity to consume (MPC) is 0.90, a 100 increase in investment spending, other ... (Read 139 times)

silviawilliams41 · **on:** Jun 30, 2018

If the marginal propensity to consume (MPC) is 0.90, a 100 increase in investment spending, other things being equal, will cause an increase in equilibrium real GDP of:
a. 90.
b. 100.
c. 900.
d. 1,000.

Question 2

Which of the following is considered part of M2?
a. Savings deposits.
b. Money market mutual fund shares.
c. Small time deposits of less than 100,000.
d. All of these.