Let C = 300 + 0.75y and I = 200. Assume no government or foreign ...

[bio_gurl]

Let C = 300 + 0.75y and I = 200. Assume no government or foreign sectors. Investment needs to decrease by ________ to decrease equilibrium output by a total of 750.
 
  A) 75 B) 100 C) 150 D) 187.50

Question 2

If urbanization in a nation keeps increasing, GDP per capita in the nation is likely to:
 
  A) initially increase then decrease after urbanization reaches a certain threshold.
  B) keep decreasing.
  C) initially decrease then increase after urbanization reaches a certain threshold.
  D) keep increasing.

[soda0602]

Answer to Question 1

D

Answer to Question 2

D

[bio_gurl]

Thank you

[soda0602]

Happy to help you