In 2007, investment in France increased by 7 billion euros. Assume the price level was constant, the multiplier was 5 and the economy was at full employment. As a result, equilibrium expenditure:
a) Increased by 35 billion euros
b) Increased by 1.4 billion euros
c) decreased by 35 billion euros
d) decreased by .71 billion euros
a) Increased by 35 billion euros
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The average propensity to consume is
A) real consumption expenditures divided by real saving. B) real saving divided by real consumption expenditures. C) real consumption expenditures divided by real disposable income. D) real disposable income divided by real consumption expenditures.
For any given year, the CPI is the price of the basket of goods and services in the
a. given year divided by the price of the basket in the base year, then multiplied by 100. b. given year divided by the price of the basket in the previous year, then multiplied by 100. c. base year divided by the price of the basket in the given year, then multiplied by 100. d. previous year divided by the price of the basket in the given year, then multiplied by 100.
Firms face trade-offs in production, including decisions related to:
A how much of a particular product to produce. B which products to produce. C the best way to produce a given amount of output. D all of the above
The percent of disposable income that consumers have to pay for their debt is called:
A. the cost of debt. B. debt service. C. debt accountability. D. a debtor's mark.