Question 33 Expansionary fiscal policy occurs when the government increases __________, decreases __________, or both to stimulate the economy toward expansion. spending; the money supply taxes; spending the money supply; spending spending; taxes the money supply; taxes Question 34 If your marginal propensity to consume is 0.6 and you get an additional $600 in income, you would spend ______ on consumption. $200 $240 $360 $1,000 $1,500 Question 35 If a bank has a required reserve ratio of 25% and there are $5,300,000 in deposits, what is amount of required reserves? $25,000 $280,000 $1,325,000 $2,275,000 $5,005,000

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 33

Expansionary fiscal policy occurs when the government increases __________, decreases __________, or both to stimulate the economy toward expansion.

spending; the money supply
taxes; spending
the money supply; spending
spending; taxes
the money supply; taxes

Question 34
If your marginal propensity to consume is 0.6 and you get an additional $600 in income, you would spend ______ on consumption.
1. $200
2. $240
3. $360
4. $1,000
5. $1,500
  
  Question 35
  If a bank has a required reserve ratio of 25% and there are $5,300,000 in deposits, what is amount of required reserves?
  
  $25,000
  
  $280,000
  
  $1,325,000
  
  $2,275,000
  
  $5,005,000

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