Congress initially intended for the Medicaid program to provide basic safety net coverage for certain vulnerable populations, including all the following but one.

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?

a. There is not enough information to determine what happens to these two macroeconomic variables. b. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). d. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). e. Real GDP and net nonreserve-related international borrowing/lending remain the same.

Based on the graphic showing the Lorenz Curve, at point d’, what percentage of total income did the highest 20 percent of earners receive in 2017?

a. 13.0
b. 28.1
c. 48.9
d. 51.2