subject
Business, 13.05.2021 04:10 sheltongraham1011

Suppose that full employment real GDP is 100, but the actual equilibrium real GDP is 60, and the marginal propensity to consume
is 0.75. What is the appropriate macroeconomic policy to use to
bring back the economy to full employment and by how much should
the appropriate tool of the policy chosen increase?
A. Monetary policy by increasing the interest rate by 6%,
B. Fiscal policy by increasing the federal fund rate by 10%
C. Contractionary policy by increasing government spending by 60
D. Expansionary fiscal policy that increases spending by 10.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 00:30, nschavez123
Refers to the way we conduct ourselves
Answers: 2
image
Business, 22.06.2019 02:30, Roof55
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $
Answers: 1
image
Business, 22.06.2019 14:30, rakanmadi87
If a product goes up in price, and the demand for it drops, that product's demand is a. elastic b. inelastic c. stable d. fixed select the best answer from the choices provided
Answers: 1
image
Business, 22.06.2019 16:30, allytrujillo20oy0dib
Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.
Answers: 3
You know the right answer?
Suppose that full employment real GDP is 100, but the actual equilibrium real GDP is 60, and the ma...

Questions in other subjects:

Konu
Mathematics, 01.04.2021 16:30
Konu
Biology, 01.04.2021 16:30
Konu
Mathematics, 01.04.2021 16:30
Konu
History, 01.04.2021 16:30