Scenario 34-1

question 119

Multiple Choice

Scenario 34-1. Take the following information as given for a small economy:
• When income is $10,000, consumption spending is $6,500.
• When income is $11,000, consumption spending is $7,250.
-Refer to Scenario 34-1. For this economy, an initial increase of $200 in net exports translates into a(n)

• A)$570 increase in aggregate demand when the crowding-out effect is taken into account.
• B)$800 increase in aggregate demand when the crowding-out effect is taken into account.
• C)$1,400 increase in aggregate demand in the absence of the crowding-out effect.
• D)$800 increase in aggregate demand in the absence of the crowding-out effect.

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Definitions:

Small Business Owner

An individual who owns and operates a business with a small number of employees and relatively low volume of sales.

Retainer

A deposit paid by a client to a lawyer before the lawyer commences work on behalf of the client.

Contingency Fee Agreement

A contingency fee agreement is an arrangement between a client and an attorney where the attorney's fees are only payable if the case is won, usually as a percentage of the settlement or award.

Legal Problem

An issue or dispute that involves legal principles or laws and requires legal solutions.