The country of Wiknam has net capital outflow of $1,000 . government purchases of $5,000 and consumption of $20,000 . Which of the following is correct?
a. If its domestic investment is $1,000 . its GDP is $26,000.
b. If its domestic investment is $2,000 . its GDP is $28,000.
c. If its domestic investment is $5,000 . its GDP is $29,000.
d. None of the above are correct.
b
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The level of an economic activity should be increased to the point where the ____ is zero
a. Marginal cost b. Marginal benefit c. Net marginal cost d. Net marginal benefit
A proportional tax charges the same percentage of income, regardless of the size of income
a. True b. False Indicate whether the statement is true or false
Impact investing is targeted toward:
A. social businesses. B. entrepreneurial ventures. C. those who live on less than $1 a day. D. those in the agricultural sector.
In a certain economy, the components of aggregate spending are given by: C = 500 + 0.75(Y - T) - 500rI = 300 - 500rG = 400NX = 30T = 40Given the information about the economy above, what would be the impact on aggregate expenditures of a one-percentage-point increase in the real interest rate (r)?
A. Aggregate expenditures would increase by 500 units. B. Aggregate expenditures would decrease by 10 units. C. Aggregate expenditures would decrease by 5 units. D. Aggregate expenditures would decrease by 1,000 units.