Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$7500.5$1,000$1,000$500Determine the new equilibrium real GDP following a decrease in taxes from 500 to 400 (?T = -$100).
A. $4,500
B. $4,000
C. $5,100
D. $4,900
Answer: C
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A) $75,000. B) $85,000. C) $95,000. D) $80,000. E) $100,000.
Suppose a firm's stock valuation is worth three times its outstanding debt. The firm's stock earns an annual return of 6 percent and pays 8 percent on the outstanding debt. What is the firm's company cost of capital?
A) 4.5 percent B) 6 percent C) 6.5 percent D) 8 percent
Stephanie has just placed an order for the latest video after she received a personalized e-mail. The e-mail is an example of
A) mass marketing. B) direct marketing. C) indirect marketing. D) interactive marketing.
Social Security payments:
A. are adjusted for inflation using the CPI. B. undergo cost-of-living adjustments. C. now hold their value over time. D. All of these statements are true.