In a Certain Economy, the Components of Planned Spending Are

question 146

Multiple Choice

In a certain economy, the components of planned spending are given by:  
C = 500 + 0.8(Y - T ) - 300r
I ᴾ= 200 - 400r
G = 200
NX = 10
T = 150
 
Given the information about the economy above, what would be the impact on autonomous expenditures of a one-percentage-point increase in the real interest rate (r ) ?

• A)Autonomous expenditures would increase by 35 units.
• B)Autonomous expenditures would decrease by 700 units.
• C)Autonomous expenditures would decrease by 35 units.
• D)Autonomous expenditures would decrease by 7 units.

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Definitions:

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Represents the organization of data points in respect of their occurrence over a given dataset.

Data Set

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Data Set

A collection of related sets of information that is composed of separate elements but can be manipulated as a unit.