In a Certain Economy, the Components of Planned Spending Are

question 108

Multiple Choice

In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T) - 300r
Ip = 200 - 400r
G = 200
NX = 10
T = 150
Given the information about the economy above, what would be the impact on autonomous expenditures of a one-percentage-point increase in the real interest rate?

• A)Autonomous expenditures would increase by 35 units.
• B)Autonomous expenditures would decrease by 70 units.
• C)Autonomous expenditures would decrease by 35 units.
• D)Autonomous expenditures would decrease by 7 units.

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Definitions:

Electron-Transport Chain

A series of electron carriers located in the mitochondrial membrane, involved in the production of ATP through the process of oxidative phosphorylation.

Hydrogen Ions

Positively charged ions (H+) that play essential roles in the chemistry of water, pH balance, and metabolic processes.

Inner Mitochondrial Compartment

The matrix within mitochondria where critical reactions in cellular respiration, including the Krebs cycle, take place.

ATP Production

The biochemical process cells use to convert food into energy in the form of adenosine triphosphate (ATP).