Table 36-1 Suppose the Economy of Macroland Is Described by the Following

question 199

Multiple Choice

Table 36-1 Suppose the economy of Macroland is described by the following: C = 200 + 0.8 DI (DI = disposable income)
I = 300 + 0.2 Y − 50 r ( Y = GDP)
( r , the interest rate, is measured in percentage points. For example, a 9 percent interest rate is r = 9) . For this economy, assume that the Federal Reserve uses its monetary policy to peg the interest rate at
R = 5
G = 750
T = 0.25 Y
X = 200
M = 150 + 0.2 Y
Hint: DI = Y − T
From Table 36-1, find the budget deficit or surplus for Macroland.

• A) 125.50
• B) −93.75
• C) −126.25
• D) −154.75

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Definitions:

IR Spectrum

A graphical display of infrared light absorption by molecules, useful for identifying functional groups and chemical bonds.

Bending Vibrations

Oscillations of atoms in a molecule about their equilibrium positions that change the angle between them without altering the molecule's bond lengths.

Spectrum

A range of values or conditions, often specifically pertaining to the distribution of energy emitted or absorbed by a substance, visible in bands of colors or intensities.

IR Spectroscopy

A technique used in analytical chemistry to identify molecular structure through the absorption of infrared radiation by molecules, leading to vibrational and rotational changes.