In fiscal year 1997, the U.S. government ran a deficit of about $21.9 billion. In fiscal year 1998, the government ran a surplus of about $69.3 billion. Other things the same, we would expect this change
a. decreased interest rates and investment.
b. decreased interest rates and increased investment.
c. increased interest rates and investment.
d. increased interest rates and decreased investment.
b
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Compare the MPSs in Canada and the U.S. If it is 0.50 in Canada and 0.20 in the U.S., then
a. the income multiplier is smaller in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a larger change in national income in theU.S. than it does in Canada b. the income multiplier is larger in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a smaller change in national income inthe U.S. than it does in Canada c. the income multiplier is larger in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a larger change in national income in theU.S. than it does in Canada d. the income multiplier is smaller in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a smaller change in national income inthe U.S. than it does in Canada e. the income multiplier is larger in the U.S. but the same change in aggregate expenditure in Canada and the U.S. creates the same change in national income inthe U.S. as it does in Canada
The sum of durable goods, nondurable goods, and services equals
A) investment. B) fixed investment. C) government purchases. D) consumption. E) net exports.