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Author Question: Suppose business decision makers become more optimistic about the future and, as a result, increase ... (Read 55 times)

Alainaaa8

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  • Posts: 576
on: Jun 30, 2018
Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by 20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:
 a. 15 billion.
  b. 20 billion.
  c. 50 billion.
  d. 80 billion.

Question 2

Which one of the following is the largest component of the money supply (M1) in the United States?
 a. Checkable deposits.
  b. Gold certificates.
  c. Credit cards and traveler's checks.
  d. Federal Reserve notes.


blfontai

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

a


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