If government increases its purchases by $20 billion and the MPC = 0.9, the resulting increase in the consumption component of AD is:
a. $2 billion

The opportunity cost of holding money increases when

A) the purchasing power of money rises. B) the nominal interest rate rises. C) the price level falls. D) consumers' real incomes increase.

How did the Great Depression affect economists' beliefs about the macroeconomy?

What will be an ideal response?