Author Question: Let C = 70 + 0.75y and I = 40. Assume no government or foreign sectors. Investment needs to increase ... (Read 58 times)

ENagel · **on:** Jun 30, 2018

Let C = 70 + 0.75y and I = 40. Assume no government or foreign sectors. Investment needs to increase by ________ to increase equilibrium output by a total of 600.

A) 30 B) 150 C) 560 D) 600

Question 2

One of the main reasons behind hyperinflation episodes is:

A) a decrease in real GDP. B) large government budget deficits.
C) high tax rates. D) a decrease in the demand for consumer goods.