Suppose that John Flygare, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000 . and the MPC is 0.8 . How much national income will be generated from John's $1,000 initial investment?
a. $200
b. $500
c. $1,000
d. $2,000
e. $5,000
E
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If government spending equals tax revenue, the government has
A. a surplus of zero, but possibly a deficit as well. B. either a surplus of zero or a deficit of zero. C. neither a surplus of zero or a deficit of zero. D. both a surplus of zero and a deficit of zero.
Give five examples showing how different factors affect interest rate calculations
What will be an ideal response?
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A. lower; potential B. higher; higher C. lower; higher D. higher; potential