If the multiplier is 4, equilibrium real GDP is $600 billion, and investment is $25 billion, what will happen if investment increases to $30 billion? Real GDP will:
a. increase to $605 billion
b. decrease to $595 billion
c. increase to $620 billion
d. increase to $624 billion
e. decrease to $580 billion
c
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Everything else held constant, when real estate prices are expected to decrease
A) the demand curve for bonds shifts to the left and the interest rate rises. B) the demand curve for bonds shifts to the left and the interest rate falls. C) the demand curve for bonds shifts to the right and the interest rate falls. D) the supply curve for bonds shifts to the right and the interest rate falls.
Which term means legislative spending that benefits a single political district?
a. Budget trading b. Vote cycling c. Logrolling d. Pork-barrel spending
Answer the following statement(s) true (T) or false (F)
1. Fiscal policy usually refers to actions at the federal government level. 2. In the early 1980s, tax cuts put the U.S. economy in a recession. 3. The largest fiscal stimulus package ever was enacted under President Obama. 4. Tax cuts and increased government purchases shift the aggregate demand curve in opposite directions. 5. Tax cuts are a fiscal tool.
Since 1976 our merchandise balance of trade has been ____ and our services balance of trade has been _____.
A. positive; positive B. negative; negative C. negative; positive D. positive; negative