Q ( 1-15 ) Solution all question 1 to 15 Choose the right answer:M1 = 2000MD= 2100 – 4000r + (G – T) I= 300 – 3000rC= 200 + .9YdT = 100G= 160[G-T is the government deficit, or fiscaldeficit]X= 130М3D1501. The government deficit, or fiscal deficit, is...а) 0b) 60c) 1002. The equilibrium interest rate, r, is...а) .05b) .04c) .0253. The equilibrium Investment, I, is.a) 150b) 200c) 1804. The equilibrium GDP, Y, is.a) 4300b) 4400c) 40005. Breakeven Consumption, C, is.a) 4070b) 3710c) 39806. Breakeven Personal Savings, A, is...a) 230b) 220c) 190NOW SUPPOSE that the President and Congress decide to use fiscal policy to stimulate theeconomy and increase government spending, G, to 200.7. The new fiscal deficit is...a) 0b) 60c) 100 6. Breakeven Personal Savings, A, is...a) 230b) 220c) 190NOW SUPPOSE that the President and Congress decide to use fiscal policy to stimulate theeconomy and increase government spending, G, to 200.7. The new fiscal deficit is...а) 0b) 60c) 1008. The new equilibrium interest rate, r, is..а) .05b).04c) .0259. The new equilibrium value of Investment, I, i...a) 150b) 200c) 18010. The new equilibrium GDP, Y, is..a) 4300b) 4400c) 400011. The new equilibrium Consumption, C, is...a) 4070b) 3710c) 398012. The new breakeven Personal Savings, A, is..a) 230b) 220c) 19013. The expansionary fiscal policy action of raising G to 200...a). caused a displacement effect, since the Investment was reducedb). did not cause a displacement effect, since the interest rate, r, increasedc). did not cause a displacement effect, since the interest rate, r, was reduced14. The expansionary fiscal policy action in this example...a). Caused all variables in the model to increaseb). It caused all the variables of the model to increase except Personal savings, Ac). It caused all the variables of the model to increase except Investment, I15. The expansionary fiscal policy action in this example...a). It did not achieve its purpose because the Investment was reduced, Ib). It did not achieve its purpose because it increased the interest rate, rc). It achieved its purpose because it increased GDP, AND.

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Choose the right answer: M1 = 2000 MD= 2100 – 4000r + (G – T) I= 300 – 3000r C= 200 + .9Yd T= 100 G= 160 [G-T is the government deficit, or fiscal deficit] X= 130 M= 150 1. The government deficit, or fiscal deficit, is... a) 0 b) 60 c) 100 2. The equilibrium interest rate, r, is... а) .05 b) .04 c) .025 3. The equilibrium Investment, I, is. a) 150 b) 200 c) 180 4. The equilibrium GDP, Y, is. a) 4300 b) 4400 c) 4000 5. Breakeven Consumption, C, is. a) 4070 b) 3710 c) 3980 6. Breakeven Personal Savings, A, is. a) 230 b) 220 c) 190 NOW SUPPOSE that the President and Congress decide to use fiscal policy to stimulate the economy and increase government spending, G, to 200. 7. The new fiscal deficit is. a) 0 b) 60 c) 100

Choose the right answer: M1 = 2000 MD= 2100 – 4000r + (G – T) I= 300 – 3000r C= 200 + .9Yd T= 100 G= 160 [G-T is the government deficit, or fiscal deficit] X= 130 M= 150 1. The government deficit, or fiscal deficit, is... a) 0 b) 60 c) 100 2. The equilibrium interest rate, r, is... а) .05 b) .04 c) .025 3. The equilibrium Investment, I, is. a) 150 b) 200 c) 180 4. The equilibrium GDP, Y, is. a) 4300 b) 4400 c) 4000 5. Breakeven Consumption, C, is. a) 4070 b) 3710 c) 3980 6. Breakeven Personal Savings, A, is. a) 230 b) 220 c) 190 NOW SUPPOSE that the President and Congress decide to use fiscal policy to stimulate the economy and increase government spending, G, to 200. 7. The new fiscal deficit is. a) 0 b) 60 c) 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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