If Figure 4-8 above is to show the result of a "fully accommodating" monetary policy following a shift of the IS curve from IS0 to IS1, what is the initial level of real income and interest rate before these changes?
A) 3500; 7.5%.
B) 4500; 12.5%.
C) 5500; 7.5%.
D) 4500; 2.5%.
C
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If tax revenues are $230 billion and the government's outlays are $235 billion, then the budget
A) surplus is $5 billion and government debt will increase by $5 billion. B) surplus is $230 billion and the budget deficit is $235 billion. C) deficit is $5 billion and government debt will remain the same. D) deficit is $5 billion and government debt will increase by $5 billion. E) deficit is $5 billion and government debt will decrease by $5 billion.
Which of the following is NOT a component of private investment, for purposes of GDP accounting?
A) additions to firms' stock of inventories B) newly produced housing C) newly built factories D) purchases by firms of used machinery
When the U.S. dollar depreciates against the yen, the yen becomes ________ expensive and the U.S. exchange rate ________
A) more; rises B) less; rises C) more; falls D) less; falls
In the figure above, the lowest 20 percent of all households own ________ percent of all wealth, the next lowest 20 percent own ________ percent of all wealth and the richest 20 percent own ________ percent of all wealth
A) 20; 20; 20 B) 20; 40; 100 C) 5; 15; 40 D) 5; 20; 60