ECO 103 Ch.10&11 Self-adj or Instability & Fiscal Policy

ANSWERS FOR THE CHOICES NO NEED FOR EXPLAINATION. THANKYOU

QUESTION 1

New government purchases of+600causes cumulative spending in the economy to increase by+1200.So MPC=

1. .9
2. .8
3. .75
4. .5

5 points

QUESTION 2

New government purchases of+300causes cumulative spending in the economy to increase by+750.So MPC=

1. .9
2. .8
3. .75
4. .6

QUESTION 3: