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Discussion Questions 10 - 1 Precisely how do the APC and...

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Discussion Questions: To obtain full credit for this assignment, you must answer two of the available questions – two original posts. Please start your post by citing which question you have chosen to answer. Respond to your questions in the appropriate thread. Your answer to each question should be at least 100 words in length. You must also comment on at least two of your classmates' posts. Your comments should be substantial and well-reasoned. Just agreeing with comments of another student does not fulfill this requirement. You are to complete all discussions by Friday of the academic week, with the first initial post by Wednesday..Note that the threads for each of these questions are already established - please answer within those threads. Discussion Questions : Discussion Questions and the Quiz for this Chapter are due no later than Noon, Monday,
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Unformatted text preview: 11/02/09. 1. Precisely how do the APC and the MPC differ? Why must the sum of the MPC and the MPS equal 1? What are the basic determinants of the consumption and saving schedules? Of your personal level of consumption? 2. Why is the actual multiplier for the U.S. economy less than the multiplier in this chapter’s simple examples? 3. What are the basic determinants of investment? Explain the relationship between the real interest rate and the level of investment. Why is investment spending unstable? How is it possible for investment spending to increase even in a period in which the real interest rate rises? 4. What is the central economic idea humorously illustrated in Art Buchwald’s piece, “Squaring the Economic Circle”? How does the central idea relate to recessions, on the one hand, and vigorous expansions, on the other?...
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