Question: Need some help with these homework questions, thanks! Question 3 4 pts When an economy is operating well below its full-employment capacity and the marginal

Need some help with these homework questions, thanks!

Need some help with these homework questions, thanks! Question 3 4 pts

Question 3 4 pts When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 0.75, a $10 billion increase in investment spending will cause the equilibrium output to rise by: O $20 billion. O $5 billion. O $10 billion. O $40 billion. Question 4 4 pts What is the difference between the federal budget deficit and the national debt? O This is a trick question because there is no difference between the budget deficit and the national debt. O The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies. O The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses. O The budget deficit is the cumulative effect of all prior national debts

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!