Figure 4-7 -Using the Information Contained in Figure 4-7 Above,the Initial Equilibrium

question 13

Multiple Choice

Figure 4-7

-Using the information contained in Figure 4-7 above,the initial equilibrium Y is 3500.If there is 500 of new fiscal stimulus and a constant money supply,Y will increase to ________ and the interest rate will ________.

• A)4000;remain constant
• B)4000;rise to 10%
• C)4500;rise to 12.5%
• D)5500;remain constant

---

Definitions:

Emissions Fee

A charge levied on the production, use, or release of pollutants, aiming to reduce environmental harm by incentivizing cleaner practices.

Optimum Level

The most advantageous condition or degree of something where the optimal balance or efficiency is achieved.

Fixed Annual Fee

A fixed annual fee is a set amount charged yearly for access to a product or service, unrelated to usage levels.

Trash Disposal

involves the collection, processing, managing, and recycling or disposal of waste materials produced by human activity.