If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion, by how much will equilibrium output increase?

If the price elasticity of demand for a good is 3.0, it is clear that the good

a. would be a poor choice to tax if the object is to raise tax revenue b. would be an excellent choice to tax if the object is to raise revenue c. is an essential good d. has a demand curve that is price inelastic at every price level e. is a complementary good

Which of the following generates demand for foreign currencies?

A. Imports of foreign goods by firms located in the United States. B. The building of plants by foreign corporations in the United States. C. Exports from the United States to foreign countries. D. Foreign tourists traveling to the United States.