The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption, and government spending remains the same and Alpetra is a closed economy, what is the change in investment?

If planned expenditure is below output, as the economy approaches equilibrium, ________

A) planned expenditure is falling B) output is rising C) saving is rising D) all of the above E) none of the above

The amount of money that someone would pay today for the right to receive a future payment is called

a. the present value of the future payment b. the determinate value of the future payment c. the interest rate d. the principal e. the time discount