This topic contains a solution. Click here to go to the answer

Author Question: Investment will increase if business taxes ____, real interest rates ____, or if business confidence ... (Read 89 times)

fbq8i

  • Hero Member
  • *****
  • Posts: 527
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

brittanywood

  • Sr. Member
  • ****
  • Posts: 355
Answer to Question 1

d

Answer to Question 2

c




fbq8i

  • Member
  • Posts: 527
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


coreycathey

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

For a complete list of videos, visit our video library