In the Keynesian aggregate expenditure model, the equilibrium level of income is achieved when
a. actual saving equals actual investment.
b. planned aggregate expenditures equal total output.
c. consumption equals income times the marginal propensity to consume.
d. the marginal propensity to consume equals planned output.
B
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What important lesson did American economists learn in the 1980s and again in 2001–2003?
A. Large tax cuts can lead to a balance of trade surplus. B. Large government budget deficits can crowd out consumption. C. Large government budget deficits can bankrupt the nation. D. Large government budget deficits can crowd out net exports.
National income minus personal taxes net of transfer payments equals disposable income
a. True b. False Indicate whether the statement is true or false
The recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curve for the yen to shift to the ________, increasing the exchange rate and the value of the yen
A) supply; right B) supply; left C) demand; right D) demand; left
Horizontal equity holds that
A. those who benefit the most from government services should have the greatest voice in determining what gets produced. B. those who benefit the most from government services should bear the higher tax burden. C. those with equal ability to pay should bear unequal tax burdens. D. those with equal ability to pay should bear equal tax burdens.