Suppose Output Is $440 Billion,government Purchases Are $40 Billion,desired Consumption

question 84

Multiple Choice

Suppose output is $440 billion,government purchases are $40 billion,desired consumption is $320 billion,and net exports are $35 billion.Absorption is equal to

• A)$405 billion.
• B)$420 billion.
• C)$435 billion.
• D)$440 billion.

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Definitions:

Junior Lienholders

Creditors who have claims on a property that are ranked below other debts in terms of repayment priority in case of default.

Collateral

A form of security provided by the borrower to the lender, consisting of property or assets, that can be taken possession of should the borrower fail to repay the loan.

Unconscionability

describes a situation where a contract or clause is so unfair to one party that no reasonable or informed person would agree to it.

Good Faith

Acting with honest intent and without intent to defraud or seek unfair advantage.