Suppose America is currently experiencing an AD Shortfall of $2,000 billion. By how much should the federal government increase its spending on goods, services and public capital projects to return the economy to a long-run macro equilibrium? Assume the Marginal Propensity to Consume (MPC) is 0.80.

Economists believe that it takes __ for market behavior to respond to a change in Monetary Policy.

Economists believe that it takes __ for market behavior to respond to a change in Monetary Policy.

Assume the Required Reserve Ratio is 25%. The maximum increase in the size of the money supply (or spending power in the economy) in response to a $300 billion increase in Excess Reserves for the private banking system is:

Assume the Required Reserve Ratio is 25%. The maximum increase in the size of the money supply (or spending power in the economy) in response to a $300 billion increase in Excess Reserves for the private banking system is:

Today, the money used in the United States is:

Today, the money used in the United States is:

Currently, the largest foreign holder of America’s national debt is:

Currently, the largest foreign holder of America’s national debt is:

Currently, the largest foreign holder of America’s national debt is: