(Answered) 1 suppose the government increases expenditures by 100

Management Studies

1) Suppose the government increases expenditures by ?100 billion and the marginal propensity to consume is 0.50. By how will equilibrium GDP? change?

The change in equilibrium GDP? is: ?$ billion. (Round your solution to one decimal? place.)

2) Suppose you deposit ?$ 2,000 cash into your checking account. By how much will checking deposits in the banking system increase as a result when the required reserve ratio is 04?0 The change in checking deposits is equal? to: ?$

?(enter your result rounded to the nearest dollar?).

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