An increase in the budget deficit is the result of:(a) Expansionary monetary policy;(b) Contractionary monetary policy;(c) Expansionary fiscal policy;(d) Contractionary fiscal policy.Company tax is a:(a) Progressive, direct tax;(b) Progressive, indirect tax;(c) Proportional direct tax;(d) Regressive indirect tax.In the base year, a country produced 50 units of output at a price of R6,00 eachfor a nominal GDP of R300. This year it produces 60 units of output at a price ofR8,00 each. What is the percentage change in real GDP since the base year?(a) 5%;(b) 10%;(c) 20%;(d) 15%. If the inflation rate is 6% and Susan receives a 6% increase in income, then, overthe year, Susan's:(a) Real and nominal income both remain unchanged;(b) Real and nominal income both rise;(c) Real income rises but nominal income remains unchanged;(d) Nominal income rises but real income remains unchanged.Given the import function, Z = 300 + 2/3Y, which of the following statements iscorrect?(a) The marginal propensity to save is 1/3;(b) The induced component is 300;(c) 2/3 is the proportion of any income spent on imports;(d) None of the statements is correct.An increase of R5 billion in income in a macroeconomy leads to an increase in R3billion in consumption spending. From this information, we can determine that themarginal propensity to save in this economy is:(a) 0.6;(b) 0.5;(c) 0.3;(d) 0.4.

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An increase in the budget deficit is the result of: (a) Expansionary monetary policy; (b) Contractionary monetary policy; (c) Expansionary fiscal policy; (d) Contractionary fiscal policy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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