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Correct
In Transvania, which uses the roumel as currency, the following data is available:
Mark 1.00 out of
1.00
Autonomous consumption 20 million roumel
¥ Flag question
Capital goods bought 30 million roumel
Household spend 60 out of every 100 centivos (100 centivos in a roumel)
Government spends 20 million roumel per year
No taxes are collected
Equilibrium income is...
a. 110 million roumel.
b. 80 million roumel.
c. 175 million roumel. v
d. 20 million roumel.
Question 2
Correct
Suppose sanctions are imposed on a small open economy which leads to a decrease
Mark 1.00 out of
in autonomous imports. What will happen to the aggregate expenditure curve if
1.00
exports remain unchanged?
¥ Flag question
If imposed sanctions would imply that there will be less autonomous imports (Z) into
the country, this will increase net exports (X-Z) at every income level, and therefore
aggregate spending will increase at every income level. This will be illustrated by a
parallel upward shift of the aggregate expenditure curve. If imposed sanctions would
imply that there will be less autonomous imports (Z) into the country, this will
increase net exports (X-Z) at every income level, and therefore aggregate spending
will increase at every income level. This will be illustrated by a parallel upward shift of
the aggregate expenditure curve.
, Question 3
Correct
Use the data below to answer the question
Mark 1.00 out of
Autonomous consumption = 10 1.00
Autonomous investment = 5 Flag question
Autonomous government spending = 20
Marginal propensity to consume = 0.8
Tax rate = 20%
Equilibrium income is...
a. 97 ¥v
b.35
c. 28
d.70
YO=1/1—e(1-t) (C414 GY
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