What was her estimate for the marginal propensity to consume

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1) In 2009, the Chair of the President's Council of Economic Advisors Christina Romer delivered a report outlining the expected impact of the American Recovery and Reinvestment Act. Her research suggested that the fiscal multiplier for increased government spending was about 1.6. Knowing what you know about fiscal multipliers, what was her estimate for the marginal propensity to consume? (please explain answer)

2) According to the website Where's George?, a one dollar bill identified by the serial number K24------I was exchanged 15 times over the course of 1,107 days. What is the "velocity" of this dollar bill (remembering that velocity is measure in years)?

Reference no: EM131094746

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