In a Simple Macro Model with Government and Demand-Determined Output,to

question 88

Multiple Choice

In a simple macro model with government and demand-determined output,to raise equilibrium national income by $100 billion,G must be

• A)raised by $100 billion.
• B)raised by $100 billion times the simple multiplier.
• C)raised by $100 billion divided by the simple multiplier.
• D)lowered by $100 billion times the simple multiplier.
• E)lowered by $100 billion divided by the simple multiplier.

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Definitions:

Bankruptcy Exemptions

Specific assets or types of property that the bankruptcy law allows an debtor to keep from creditors when filing for bankruptcy.

Claims Of Creditors

The legal rights of creditors to collect what is owed to them by a debtor.

Breach Of Peace

An act that disturbs public order or tranquility, such as fighting or causing a disturbance.

Repossession

The act of reclaiming ownership of property by a seller or lender from the buyer due to nonpayment or breach of terms.