Consider a Simple Macro Model with a Constant Price Level

question 78

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.The trade balance at equilibrium national income is

• A)a deficit of 36.67.
• B)a deficit of 21.43.
• C)zero.
• D)a surplus of 21.43.
• E)a surplus of 36.67.

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Definitions:

Vertical Merger

A merger between two companies that operate at different stages of the production process for a specific finished product.

Tire Manufacturer

A company specialized in the production and sale of tires for various vehicles, including cars, trucks, and bicycles.

Automobile Manufacturer

A company that produces and sells motor vehicles, including cars, trucks, and motorcycles.

Pre-Merger Market Value

The total market valuation of a company before it enters into a merger agreement with another entity.