The most important determinant of the decisions to lend or borrow is the real rate of interest

The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Aggregate planned expenditure is less than actual expenditure if real GDP is

A) less than $700 billion. B) more than $800 billion. C) $800 billion. D) less than $800 billion. E) more than $700 billion.

Refer to Figure 12.4. Since the housing bubble burst and the economy returned to its initial, pre-bubble level before the corrective policy changed output, the impact of the change in policy is best represented as a movement from

A) point A to point B. B) point C to point D. C) point B to point D. D) point C to point B.