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Please I need help with this Economics Homework. 1. If the marginal propensity to save is 0.125, how much is the spending multiplier? A) 0.8
Please I need help with this Economics Homework.
1. | If the marginal propensity to save is 0.125, how much is the spending multiplier? | |
A) | 0.8 | |
B) | 1.25 | |
C) | 5 | |
D) | 8 |
2. | _____ will most likely decrease the economy's short-run aggregate supply. | |
A) | A low rate of investment | |
B) | Unfavorable weather in the corn belt | |
C) | Advances in technology | |
D) | An increase in the expected inflation rate |
SCENARIO: Assume that the Empathy State Bank begins with the balance sheet below and is fully loaned up.
Empathy State Bank | |||
Assets | Liabilities | ||
Vault Cash | $2,500 | Deposits | $100,000 |
Deposits at the Federal Reserve | 7,500 | ||
Loans | 90,000 |
3. | This bank's reserve ratio is: | |
A) | 0.025. | |
B) | 0.075. | |
C) | 0.10. | |
D) | 0.25. |
4. | Efua Apeatsewa deposits $1,500 cash into her checking account. The reserve requirement is 25%. What is the change in his bank's excess reserves? | |
A) | $1,500 | |
B) | $375 | |
C) | $1,125 | |
D) | $0 |
Which of the following is a flat tax?
- Sales tax.
- Federal Income tax.
- State Income tax.
- Corporate tax.
- Property tax.
According to the book what percentage of the federal government's revenue is used to service its debt?
- 6%
- 12%
- 15%
- 20%
- 25%
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