1.John Smith made a one year investment that generated a nominal return of 6% or $3000.

1.      John Smith made a one year investment that generated a nominal return of 6% or $3000.

 The real return was $2000. What was the original investment amount? What was the annual inflation rate?

6.      The marginal propensity to consume is equal to 0.90.An increase in household wealth causes autonomous consumption to rise by $10 Billion. How much will GDP increase in this case, assuming no change in prices?

Return is based on Investmentit letwen is by. thenInmestrment is looy.Sox150- 50,003Investomit = 50, 5002Real return ) . ? .annual inflation rate :50, 502inflation= 2 yCSScanned with...