Author Question: Suppose that in a given country in a given year, GNP equals 2,000, investment expenditures equal ... (Read 34 times)

Mr.Thesaxman · **on:** Jun 30, 2018

Suppose that in a given country in a given year, GNP equals 2,000, investment expenditures equal 200, government expenditures equal 150, and the current account surplus equals 50. Consumption expenditures therefore equal

A) 1,000.
B) 1,200.
C) 1,400.
D) 1,600.

Question 2

If the central bank did not follow the Taylor principle, an increase in inflation would lead to ________.

A) a decrease in the nominal interest rate
B) an increase in inflation
C) a decrease in aggregate expenditure
D) all of the above
E) none of the above