$\begin{array} { l } C = 40 + 0.8 \mathrm { Y } \\I _ { g } = 40 \\X = 20 \\M = 30\end{array}$

question 53

Multiple Choice

$\begin{array} { l } C = 40 + 0.8 \mathrm { Y } \\I _ { g } = 40 \\X = 20 \\M = 30\end{array}$
(Advanced analysis) The equations give information for a private open economy. The letters $Y , C , I _ { g } , X$ , and $M$ stand for GDP, consumption, gross investment, exports, and imports, respectively. Figures are in billions of dollars. International trade in this case

• A) has an expansionary effect on GDP.
• B) has a contractionary effect on GDP.
• C) has no effect on GDP.
• D) is causing in?ation in this economy.

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Definitions:

Customers Served

The number of individual customers or clients that a business has provided goods or services to during a specific period.

Total Expenses

Represents the sum of all costs and expenses incurred by a business in a specific period, including both operational and non-operational items.

Spending Variance

The difference between the amount budgeted for spending and the actual amount spent, which can indicate over or underperformance against the budget.

Budgeting

The process of creating a plan to spend your money, outlining anticipated revenues and expenses for a certain period.