econ+2105+quiz+5+chapters+10+and+11

econ+2105+quiz+5+chapters+10+and+11 - ECON 2105 GT Quiz 5...

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Page 1 ECON 2105 GT Quiz 5 Chapter 10 and 11 Name: __________________________ Date: _____________ 1. If a country experiences a trade surplus, we can conclude that it is also experiencing: A) a net capital inflow. B) a budget deficit. C) a net capital outflow. D) a budget surplus. Use the following to answer question 2: Figure: The Aggregate Consumption Function and Planned Aggregate Spending 2. (Figure: The Aggregate Consumption Function and Planned Aggregate Spending) If expected future disposable income increases in this economy, then the: A) economy will move upward along the AE . B) AE will shift up. C) economy will move downward along the AE . D) AE will shift down.
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Page 2 3. If the multiplier is 4, and investment spending falls by $100 billion, the change in equilibrium income will be: A) –$25 billion. B) $25 billion. C) –$400 billion. D) $400 billion. 4. If in an open economy, the government's budget deficit increases at the same time as the trade deficit grows, this will lead to a(n) _________ in the demand and a(n) ________
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econ+2105+quiz+5+chapters+10+and+11 - ECON 2105 GT Quiz 5...

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