Refer to the Information Provided in Table 9

question 138

Multiple Choice

Refer to the information provided in Table 9.4 below to answer the questions that follow.
Table 9.4
All Figures in Billions of Dollars

-Refer to Table 9.4.The economy is at the equilibrium level of output.If government spending decreases by $100 billion,the new equilibrium level of output is

• A)$3,100 billion.
• B)$2,400 billion.
• C)$1,550 billion.
• D)$1,450 billion.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Proxy

An authority to act on behalf of another person in voting at shareholder meetings or making other decisions.