Author Question: Which of the following explains why a 100 billion reduction in consumption spending might decrease ... (Read 156 times)

Garrulous · **on:** Jun 30, 2018

Which of the following explains why a 100 billion reduction in consumption spending might decrease equilibrium real GDP by more than 100 billion?
a. Say's law.
b. The quantity theory of money.
c. Flexible resource prices.
d. The multiplier principle.

Question 2

Which of the following is a desirable property of money?
a. Scarcity.
b. Portability.
c. Divisibility.
d. All of these.