Between 2015 and 2016 the government reported that disposable income decreased by $400 billion. If the MPC equals 0.8, then consumption expenditure
What will be an ideal response?
decreases by $320 billion.
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Keynes advocated the use of taxation and government spending to influence the level of GDP in the short run
Indicate whether the statement is true or false
Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market? Suppose the current price is $12.00
What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.
The historical data on velocity shows that velocity for
a. M1 has fallen since 1929 and has become more stable since 1981. b. M1 has risen since 1949 and has become more volatile since 1981. c. both M1 and M2 have increased since 1949 but have become more stable since 1979. d. both M1 and M2 have declined since 1949.
A television report states: "The Federal Reserve will lower the discount rate for the fourth time this year." This report indicates that the Federal Reserve is most likely trying to:
A. Reduce inflation B. Save the banking industry C. Stimulate the economy D. Improve the savings rate