In a certain economy, when income is $400, consumer spending is $325 . The value of the multiplier for this economy is 3.33 . It follows that, when income is $450, consumer spending is
a. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand.
b. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $166.50 increase in aggregate demand.
c. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand.
d. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $166.25 increase in aggregate demand.
b
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The increase in speed and power of personal computers over the past fifteen years has been phenomenal. Such technological change, with the old being ever more quickly replaced by the new, suggests growing ________ in ________ investment
A) instability, net B) instability, net and gross C) instability, gross D) stability, net and gross E) stability, net
The exchange rate is
a. the rate at which goods will exchange for each other in the international market b. the number of units of one currency required in exchange for one unit of another currency c. the number of units of one currency required in exchange for one unit of another countries' good d. established by the ratio of the values of currency to goods e. set by each individual country, which is why we have deficits and surpluses on current account