In an Open Economy with Government and Demand-Determined Output,an Increase

question 31

Multiple Choice

In an open economy with government and demand-determined output,an increase in the equilibrium level of national income could be caused by

• A)an increase in taxes at all levels of income.
• B)an increase in the desired level of imports at all levels of income.
• C)a decrease in desired consumption at all levels of income.
• D)a decrease in the desired level of saving at all levels of income.
• E)a decrease in government purchases.

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Definitions:

Thermal Protection Tiles

Materials used on spacecraft exteriors to protect against high temperatures during re-entry into Earth's atmosphere.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or a system without violating any constraint.

Catalysts

Substances that increase the rate of a chemical reaction without themselves being consumed in the process.

Reaction Times

The amount of time taken to respond to a stimulus or task.