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If an economy experiences a $0.8 trillion increase in investment resulting in an increase in real GDP from $10 trillion to $12 trillion
a. what is the change in equilibrium expenditure
b. what is the change in autonomous expenditure
c. what is the multiplier
d. how would an increase in the marginal tax rate effect the multiplier
Zero-Coupon Bonds
Bonds that do not pay interest during their lifetime but are issued at a discount to their face value, thus generating profit at maturity.
Yield
The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.
Minimum Number
The lowest quantity or amount that is allowed, required, or desired.
Coupon Rate
The percentage rate of interest a bond yields annually, based on its nominal value.
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