If, for the United States, exports are 450, imports are 320, net income from foreign investments is -60, and net transfers from abroad is -50, then the U.S. current account has a
A) deficit of 430. B) deficit of 110. C) surplus of 20. D) surplus of 130.
Question 2
The MPC is 0.90 and there are no income taxes or imports. If government expenditures on goods and services increases by 2.0 billion, after the multiplier effect works out, aggregate expenditure increases by
A) 2.22 billion. B) 2.0 billion. C) 10 billion. D) 20 billion. E) 1.8 billion.
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