If consumption is given by C = 300 + .6 (Y-T) and I = 300 – 40r, the IS curve is
a. Y = 600 – 2.4T – 40r + G.
b. Y = 600 + .6Y -100r – G
c. Y = 1500 – 1.5T – 100r + 2.5G
d. Y = 1500 + .6T – 100r – G
e. none of the above.
C
Economics
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Suppose the exchange rate falls from $1.20 Canadian per U.S. dollar to $1.10 Canadian per U.S. dollar. U.S. exports will ________, U.S. imports will ________, and U.S. aggregate demand will ________
A) decrease; increase; decrease B) decrease; increase; increase C) increase; decrease; increase D) increase; increase; increase
Economics
An efficient allocation of resources is reached in the figure above when output equals
A) 1 million. B) 2 million. C) 3 million. D) 4 million.
Economics