If the MPC is 0.6 and the tax rate is 20%, a $200 decrease in autonomous net exports will decrease equilibrium income by

Which of the following describes the "invention" of banking?

A) Clergy in the Renaissance created the banking system to help further the growth of the church. B) Goldsmiths in the sixteenth century issued gold receipts which entitled its owners to reclaim their gold on demand. C) The United States government founded the Federal Reserve in 1913. D) The British Empire created a banking system to fund its exploration of the New World. E) Members of the New York Stock Exchange founded the Bank of America in the 1700s.

During this year, Barbara earned $60,000 as a financial analyst, paid taxes of $5,000 and consumed $53,000. If Barbara's wealth was $4,000 at the beginning of the year, at the end of the year Barbara's wealth was

A) $6,000. B) $60,000. C) $2,000. D) $4,000. E) $5,000.