What is the difference between socialism and communism? What are some examples of countries that are largely socialistic and some that are communistic?
QUESTION 2Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . A decrease in government spending of 1 billion would result in a decrease in GDP of:
a. 0.
b. 0.9 billion.
c. 1.0 billion.
d. 9.0 billion.
e. 10.0 billion.
QUESTION 3A majority of the commercial banks in the United States are not members of the Fed.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Describe the differences between capitalism and socialism.
QUESTION 5Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.80 . A decrease in government spending of 1 billion would result in a decrease in GDP of:
a. 0.
b. 0.8 billion.
c. 1.0 billion.
d. 5.0 billion.
e. 8.0 billion.
QUESTION 6The Federal Reserve System was created by an act of Congress in 1933 in an effort to end a wave of bank failures brought on the Great Depression.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Discuss the three basic types of economic systems.
Quick Reply
