Q. Assumes the MPC is 2/3. If gross investment spending rises by 2 million the level of the GDP will change by Elucidate how much?
Q. We conversed short-term U.S. government bonds. But the U.S. government also issues longer-term bonds with horizons of up to 30 years. Explain why do 20-year bonds issued by the U.S. government have lower rates of return than 20-year bonds issued by corporations? Also that would you considers more likely, to longer-term- U.S. government bonds have a high interest rate than short-term U.S. government bonds or vice versa? Elucidate