« previous next »

Author Question: When an economy is operating well below its full-employment capacity and the marginal propensity to ... (Read 77 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jun 30, 2018
When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 0.75, a 10 billion increase in investment spending will cause the equilibrium output to rise by:
 a. 5 billion.
  b. 10 billion.
  c. 20 billion.
  d. 40 billion.

Question 2

Which of the following is not a component of the M1 money supply?
 a. Demand deposits.
  b. Large-denomination (more than 100) bills.
  c. Interest-earning checking deposits.
  d. Outstanding balances on credit cards.


jesse.fleming

  • Sr. Member
  • ****
  • Posts: 301
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010 Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010
Excess heat capacity chart Excess heat capacity chart
A Tough Economy ...for students A Tough Economy ...for students
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Full-term Fetus Full-term Fetus
Video: Supine Position

For a complete list of videos, visit our video library