Question

References Mailings Review View Help Question 8 1 pts The ultimate origin of funds for business investment spending is: O saving by households, government and foreigners O loans from the banking system O government expenditures O taxes and transfer payments Question 9 1 pts According to the National System of Accounts, which of the following is counted towards government purchases? The federal government pays Social Security benefits to retirees The state of California subsidizes purchases of electric cars All of the answer options are correct. The city of Paris, Texas, pays a private firm to recycle plastic waste in that city. Question 10 1 pts An increase in the marginal propensity to consume will: O Lead to the consumption function becoming steeper O Shift the consumption function upwards Shift the consumption function downwards Lead to the consumption function becoming flatter

Answer 1

8.Ans:-(a)saving by households,government and foreigners.

9.Ans:-the state of california subsidizies purchases of electrics cars.l

10. Ans:-lead to the consumption function becoming steepe.This means the value of b (MPC) has increased. Therefore, people are spending a higher % of their additional income. This could be due to rising confidence, lower saving and easier availability of credit.