Question

Use the following information to answer to answer this question.
National Income (Y) = 5,200; Budget Deficit = 150; Disposable Income (Y_d) = 4,400; Consumption (C) = 4,100; Net Export = 0. The value of Private Saving is

Group of answer choices

A -150

B 150

C 280

D 300

E none of the above

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Question 181 pts

Consider the IS-LM framework. Suppose there is a policy mix of expansionary monetary policy and contractionary fiscal policy. This combination of policies must cause:

Group of answer choices

A an increase in the interest rate (i)

B a reduction in i

C an increase in output (Y)

D a reduction in output (Y)

E ambiguous effects on the interest rate (i)

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Question 191 pts

Consider the IS-LM framework. Which of the following would increase the short-run output effects of a monetary expansion?

Group of answer choices

A an increase in the marginal propensity to consume

B an increase in the interest rate sensitivity of investment

C The IS curve is very flat

D all of the above

E none of the above

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Question 201 pts

Suppose there is an increase in government spending in a closed economy. In the medium run such a fiscal policy will cause

Group of answer choices

A The neutral interest rate to fall

B No change in the neutral interest rate

C The neutral interest rate to rise

D Output to rise

E Both (a) and (d)

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Question 211 pts

As product markets become more competitive and the mark-up decreases, we would expect which of the following to occur?

Group of answer choices

A No change in the real wage in the medium run

B An increase in the aggregate price level in the medium run

C An increase in the interest rate in the medium run

D An increase in output in the medium run

E None of the above

Answer 1