Assume that all taxes are lump-sum, net exports = 0, and the marginal propensity to consume is 0.8. Then, if investment and taxes were each to fall by $100 million, the equilibrium level of income would
A) rise by $100 million.
B) fall by $100 million.
C) rise by $500 million.
D) fall by $500 million.
B
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Which of the following statements is true?
A) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. C) Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. D) All individuals in both countries are made better off as a result of international trade.
Which of the following is true?
A) The loanable funds model is essentially a model that determines the long-term nominal rate of interest. B) The loanable funds model is essentially a model that determines the short-term real rate of interest. C) The money market model is essentially a model that determines the short-term real rate of interest. D) The money market model is essentially a model that determines the short-term nominal rate of interest.
Which of the following advertising statements could be considered greenwashing?
A) "Only high quality products are used to make our guacamole." B) "Try our pizza; it is the best pizza you will ever taste." C) "Our employees love to make pizza for you!" D) "Our product is 100 percent biodegradable."
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model? a. The real risk-free interest rate rises and real GDP falls
b. The real risk-free interest rate falls and real GDP rises. c. The real risk-free interest rate rises and real GDP remains the same. d. The real risk-free interest rate and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.