The following question are based on the following diagram showing the equilibrium level of GDP. Exports are currently $60 billion and imports are $40 billion.
-If in the preceding question the multiplier is 3,the new level of GDP will be ________ billion.
Definitions:
Efficient Markets Hypothesis
The theory that all available information is already reflected in securities prices, implying that stocks always trade at their fair value.
Actual Capital Markets
Refers to live, operational markets where securities, debts, and equities are traded and capital is allocated in real time.
Market Efficiency
A theory stating that all available information is already reflected in asset prices, thus making it impossible to consistently achieve higher returns.
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