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Author Question: Investment will increase if business taxes ____, real interest rates ____, or if business confidence ... (Read 109 times)

fbq8i

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on: Jun 30, 2018
Investment will increase if business taxes ____, real interest rates ____, or if business confidence ____.
 a. increase, increases, increases
  b. decrease, decrease, decreases
  c. increase, increases, decreases
  d. decrease, decrease, increases

Question 2

A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What will happen to the equilibrium real GDP if a tourist visits the country and spends 100 that she brought with her?
 a. It will not change.
  b. It will increase by 100.
  c. It will increase by 200.
  d. It will increase by 143.
  e. It will increase by 90.


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brittanywood

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

c


fbq8i

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

patma1981

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Reply 3 on: Yesterday
Gracias!

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