If households save $40 billion less at each level of income and the MPC=0.8, the aggregate expenditure line will
What will be an ideal response?
shift upward by $40 billion
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According to this Application, transformative economic growth, such as that which occurred with the Industrial Revolution, typically requires
A) both participatory and authoritarian political institutions. B) more authoritarian political institutions. C) neither participatory nor authoritarian political institutions. D) more participatory political institutions.
During this year, a country reports imports of $1,000 billion, exports of $1,100 billion, foreign investment in the country of $900 billion, investment abroad of $1,200 billion, net interest and net transfers of zero
What is the country's current account balance?
Assume that for a particular firm's output price = $80, marginal cost = $30, average total cost = $25. This information suggests that the firm in question has:
A) no market power. B) very little market power. C) a fair degree of market power. D) absolute market power.
The tax multiplier equals 1 ? spending multiplier
a. True b. False Indicate whether the statement is true or false