Econ HW

Homework

1) Define MPC(marginal propensity to consume) and MPS(marginal propensity to save)

2) Define multiplier effects, based on Keynesian Fiscal policy.

3) When economy falls into a recession, what kind of fiscal policy is needed? Give a specific tool of fiscal policy.

4)Discuss the long run effects of "Crowding out" due to a short run expansionary fiscal Policy.

5) Treasure Hunt: 

a) Go to www.cengage.com/sso (Links to an external site.)Links to an external site.  web site. At Bookshelf of Arnold economics of 11th edition, click Economics Course Mate of Economics(11th ed) by Roger A Arnold . Then, click "select chapter" for Ch 11  and try Ch11: Fiscal policy  to get  access to " Video Office hours  "  left menu bar.     Summarize the contents of "Video Office hours". (3 points)

b) Summarize the contents of "Working with Diagrams" of Ch  8 , 9 ,  10  and 11 at  www.cengage.com/sso (Links to an external site.)Links to an external site.