Answer: D
Explanation: Im not sure if im correct but i believe its D
Answer: B) GNMAs are considered to be the riskiest of the agency issues
Explanation:
The Government National Mortgage Association (GNMA) or <em>Ginnie Mae</em> as they are popularly known, are a Federal agency that guarantee the payment of interest and principal on securities by lenders that are approved by the Agency.
As a result, these securities are backed, like Treasury Bills, by the full faith and credit of the United States Government which means that they are the safest of Agency issues.
Answer:
A) 50 millions
B) 10
C) 0.10
Explanation:
Government spending multiplier:
1/(1-MPC) = 1/MPS
1/(1-0.75) = 1/0.25 = 4
The government multiplier is 4 thus, to increase the GDP by 200 million the government spending should be of 50 millions as:
government spending x multiplier = increasein GDP
G x 4 = 200
G = 200/4 = 50
we are given with G and increase in GDP we should solve for multiplier:
government spending x multiplier = increasein GDP
20 x m = 200
m = 200 / 20 = 10
C) the multiplier is: 1/(1-MPC) = 1/MPS
if m = 10 then:
1/MPS = 10
MPS = 1/10 = 0.10
Answer:
to save for ur future financial goals