Desired investment spending

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Reference no: EM13156656

Suppose that national income is initially at its equilibrium level when desired investment falls.we would except

(A):a fall in national income,but not by as much as the fall in desired investment

(B):a fall in national income by some multiple of the fall in desired investment spending

Question:

Suppose Mr.Robinson desposits pounds 600 in currency at a bank.Later that day Ms.Volker borrows pounds 1200 from the same bank.The money supply will have(A):increase by pounds 600(B):decreased by pounds 600

Reference no: EM13156656

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