Use the Following Information Below to Answer the Following Question(s)

question 29

Multiple Choice

Use the following information below to answer the following question(s) : C = 800 + 0.65YD
I = 750
G = 1500
T = 900
-Refer to the information above. Suppose government spending decreases by 400 for the above economy. Given the above information, we know that equilibrium output will decrease by:

• A) 844.
• B) 244.
• C) 2144.
• D) 1144.
• E) 444.

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Definitions:

France

A Western European country known for its rich history, cultural influence, and significant contributions to art, science, and philosophy.

Germany

A country in Central Europe known for its history, culture, economic power, and significant contributions to art, science, and philosophy.

Lusitania

A British ocean liner famously sunk by a German U-boat in 1915, an event that significantly swayed public opinion in several countries against Germany during World War I.

United States

A federal republic in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.