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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?

  1. Sales tax.
  2. Federal Income tax.
  3. State Income tax.
  4. Corporate tax.
  5. Property tax.

According to the book what percentage of the federal government's revenue is used to service its debt?

  1. 6%
  2. 12%
  3. 15%
  4. 20%
  5. 25%

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