Suppose the marginal propensity to consume is 0.8. A $20 billion increase in government spending shifts the IS curve
A) to the right by $100 billion.
B) to the left by $20 billion.
C) to the left by $16 billion.
D) to the right by $2.5 billion.
A
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The originate-to-distribute business model has a serious ________ problem since the mortgage broker has little incentive to make sure that the mortgagee is a good credit risk
A) principal-agent B) debt deflation C) democratization of credit D) collateralized debt
The Board of Governors of the Federal Reserve is:
a. appointed by the president, and each governor serves a 7-year term. b. appointed by the president, and each governor serves a 14-year term. c. elected by Congress, and each governor serves a 10-year term. d. elected by Congress, and each governor serves a 4-year term. e. elected by Congress, and each governor serves a 7-year term