Table 131Canada's Saving,Investment,Import,and Export Functions (In Billions of Dollars) Under a a System

question 81

Multiple Choice

Table 13.1.Canada's Saving,Investment,Import,and Export Functions (in billions of dollars) Under a System of Fixed Exchange Rates
Export Function X = 3000
Investment Function I = 1000
Saving Function S = -1000 + 0.2Y
Import Function M = 500 + 0.25Y
-Referring to Table 13.1,if Canada's income rises by $200 billion,saving would rise by:

• A) $10 billion
• B) $20 billion
• C) $30 billion
• D) $40 billion

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Definitions:

Debt-To-Assets Ratio

A financial metric indicating the proportion of a company's assets that are financed by debt, used to assess the company's leverage and financial stability.

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and printing costs.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income, assets, or transactions.