The value of a sale of a share of stock is considered to be an investment in national income accounting.

Economists studying the impact of currency unions on trade found currency unions:

A) increased levels of trade by 221%. B) increased levels of trade by 104%. C) increased levels of trade by 38%. D) had no effect on trade levels.

Assume the marginal propensity to consume (MPC) is 0.75 and the economy is in recession with real GDP $1 trillion below full-employment real GDP. To achieve full employment, aggregate demand (AD) must be increased $2 trillion. Following discretionary fiscal policy, government spending should be increased:

a. $0.25 trillion. b. $1 trillion. c. $0.5 trillion. d. $2 trillion.