An equilibrium income in an open economy with government occurs when:
A) savings equals investment plus government spending plus net export earnings.
B) unintended inventory changes are zero.
C) planned saving equals actual planned investment.
D) planned saving equals actual investment plus government spending.
Correct Answer:
Verified
Q3: Which of the following statements is false?
A)
Q4: Government activity affects aggregate demand by:
A) their
Q5: Which of the following is false?
A) AE=C+I+G+X-Z.
B)
Q6: If the MPC is 0.8 out of
Q7: When government spending increases and taxes do
Q9: Other things remaining the same, an increase
Q10: If income tax rate increases:
A) disposable income
Q11: Other things constant, if the government imposes
Q12: Assume that the MPC out of disposable
Q13: A $1 increase in government spending will
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