Which of the following is most sensitive to monetary policy?
A. Government expenditure
B. Consumption spending
C. Utility spending
D. Investment spending
Answer: D
Economics
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Suppose Berylia's marginal propensity to consume is 0.8 . A recessionary gap of $200 exists in this economy. In order to close this gap, the government should increase its aggregate expenditures by _____
a. $40 b. $100 c. $200 d. $80
Economics
Figure 9-3
Suppose that U.S. tastes for British goods increase. Then, in
a.
the supply curve shifts from S1 to S2
b.
the supply curve shifts from S2 to S1
c.
the demand curve shifts from D2 to D1
d.
the demand curve shifts from D1 to D2
e.
both demand and supply shift to the right
Economics