According to this Application, what is one of the major puzzles regarding international financial statistics?
A) There appears to be the same amount of investment income paid and received each year.
B) There appears to be less investment income paid than received each year.
C) There appears to be more investment income paid than received each year.
D) none of the above
Question 2
An economy has no imports or income taxes. The MPC is 0.75 and real GDP is 120 billion. Businesses increase investment by 4 billion. The new level of real GDP is
A) 140 billion. B) 128 billion. C) 136 billion. D) 124 billion. E) 132 billion.
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