Figure 32-5 Refer to This Diagram of the Open-Economy Macroeconomic Model to Model

question 69

Multiple Choice

Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below.

-Refer to Figure 32-5.Starting from 3% and .75,an increase in the government budget deficit can be illustrated as a move to

• A)4% and 1
• B)4% and .5
• C)2% and 1
• D)2% and .5

---

Definitions:

Slip of the Tongue

An unintentional error in speech where a word is misused, often revealing a subconscious thought or suppressed feeling.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology.

Studying

The act of devoting time and attention to gaining knowledge on a subject, especially through reading and academic research.

Regression

A statistical method for predicting the value of a dependent variable based on the value(s) of one or more independent variables, or a defense mechanism leading to reversion to an earlier stage of development.