Refer to the table above. What will be the value of the gross domestic product of the country if the country runs a trade surplus of $30,000 next year, everything else remaining unchanged?

The simple fiscal policy multiplier occurs in the IS-LM model when ________ interest responsiveness of money demand produces a ________ LM curve

A) zero, vertical B) zero, horizontal C) infinite, vertical D) infinite, horizontal

Which of the following policy changes would lead to a decrease in the real interest rate and an increase in investment and saving?

a. a larger investment tax credit b. an expansion of eligibility for Individual Retirement Accounts c. an increase in income-tax rates, with no change in the government budget deficit or surplus d. an increase in government purchases, with no change in taxes