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mdagenh1 mdagenh1
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5 years ago

Question 1.

If the government spending multiplier were 4.2, a $1 billion increase in government spending would raise GDP by



▸ $2.1 billion after one year.

▸ $1 billion after two years.

▸ $3.2 billion after one year.

▸ $4.2 billion after one year.

Question 2.

Because the Fed's current tool for changing the interest rate is to change the ________, once the decision has been made to make the change, ________.



▸ rate it pays on bank reserves; the implementation lag is usually very long

▸ rate it pays on bank reserves; there is in effect no implementation lag

▸ required reserve rate; the implementation lag is usually very long

▸ required reserve rate; there is in effect no implementation lag
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
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aishasuaishasu
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5 years ago
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mdagenh1 Author
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This helped my grade so much Perfect
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Smart ... Thanks!
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