The table below shows the consumption schedule for a hypothetical economy. All figures are in billions of dollars.RGDPConsumption$600$590610598620606630614640622650630660638If investments were fixed at $12, taxes were zero, government purchases of goods and services were zero, and net exports were zero, then equilibrium real GDP would be $610 initially. If government purchases were then raised from $0 to $4, other things constant, the equilibrium real GDP would become

Suppose a long lost relative died and left you a trust fund worth $1 million that you will receive ten years from now. What effect, if any, will this have on your demand for airline travel? (Assume that airline travel is a normal good.)

What will be an ideal response?

Why do people keep currency in their pockets when bank deposits pay interest?

A) Because banks might steal your money. B) Because currency is more liquid. C) Because bank deposits lose value due to inflation. D) Because bank deposits lose value due to changes in interest rates.