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 78 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 :)


6ana001

  • Member
  • Posts: 311
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

For a complete list of videos, visit our video library