Investment will increase if business taxes ____, real interest ...

[fbq8i]

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.

[brittanywood]

Answer to Question 1

d

Answer to Question 2

c

[fbq8i]

YES! Correct, THANKS for helping me on my review

[milbourne11]

Great answer, keep it coming