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 current international transactions in the context of the Three-Sector-Model?
a. Real GDP rises, and current international transactions become more negative (or less positive).
b. Real GDP and current international transactions remain the same.
c. There is not enough information to determine what happens to these two macroeconomic variables.
d. Real GDP falls, and current international transactions become more negative (or less positive).
e. Real GDP rises, and current international transactions remain the same.
.A
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A) 1,600 tons B) 2,400 tons C) 3,200 tons D) 4,000 tons
Sam, who owns a carpentry shop, discovered that with 4 laborers he could produce 18 cabinets per day. With 5 laborers he produced 25 cabinets and with 6 laborers he produced 36 cabinets. What was the MPP of the 5th laborer?
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