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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 33
 

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

 
  1. spending; the money supply

     
  2. taxes; spending

     
  3. the money supply; spending

     
  4. spending; taxes

     
  5. 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?

       
      1. $25,000

         
      2. $280,000

         
      3. $1,325,000

         
      4. $2,275,000

         
      5. $5,005,000

         
         
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