03-02-2009 85034 PM

03-02-2009 85034 PM - BT^-\^ ^ A) taxes must equal...

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21) Consider the following macro model: C = 60 + 0.43Y, I = 150, G = 260, T = 0, X = 90, IM = 0.06Y. The 21) trade balance at equilibrium national income is ^ . _ /• . \, -, *A ,-~ A) a deficit of 36.67 ' W B) a deficit of 21.43 C) zero D) a surplus of 21.43 E) a surplus of 36.67 22) In a macro model with an open economy and government, a target level of national income 22) p^ A) can be achieved by changes in G, T, or both. B) only by changing both G and T at the same time. 'Q can be achieved by changing G, but not T. D) can be achieved by changing T, but not G. E) cannot be achieved by any of the government's fiscal policy tools. 23) If net exports is greater than zero an economy is
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Unformatted text preview: BT^-\^ ^ A) taxes must equal government expenditure. B) depleting foreign assets. C) not saving. D) not investing. E) accumulating foreign assets. 24) Consider the following macro model: C = 60 + 0.43Y, I = 150, G = 260, T = 0, X = 90, IM = 0.06Y. The 24) marginal propensity to spend on national income, z, is . ? 0 ^3> ~CKO 0 O A) 0.06 B)0.37 Q0.43 D) 0.49 E) 0.63 25) A decrease in domestic national income will cause a the net exports curve. . 25) A) parallel downward shift of B) rotation downward in C) movement to the left along D) rotation upward in E) parallel upward shift of...
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