In Econland,the Components of Planned Aggregate Expenditure Are Given By

question 72

Multiple Choice

In Econland,the components of planned aggregate expenditure are given by:
C = 500 + 0.75(Y - T) - 500r
I = 300 - 500r
G = 400
NX = 30
If net taxes equal 40 and the central bank sets the interest rate at 0.05 (5%) ,what is short-run equilibrium output?

• A) 4,520.
• B) 4,560.
• C) 4,600.
• D) 4,640.
• E) 4,680.

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Definitions:

Arbitration Clause

A provision in a contract that requires the parties to resolve disputes through arbitration rather than through the court system.

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Capable of being imposed or brought into effect legally, typically referring to contracts, agreements, or laws.

Offer

A proposal presented by one party to another with the intention to create a legally binding agreement upon acceptance.

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An escrow account is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction, ensuring fair and secure dealings.