If Both Autonomous Imports and Autonomous Taxes Decrease by $100B

question 152

Multiple Choice

If both autonomous imports and autonomous taxes decrease by $100B we expect that equilibrium income will

• A)increase by more than $200B.
• B)decrease by more than $200B.
• C)increase by $200B.
• D)remain unchanged.

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Definitions:

Foreign Corrupt Practices Act

A United States federal law that aims to prevent the bribery of foreign officials for business purposes and ensure accounting transparency.

Bribery Charges

Legal accusations against individuals or entities for offering, giving, receiving, or soliciting something of value to influence actions or decisions of officials or representatives.

Facilitate Performance

The process of making it easier for a system, organization, or individual to achieve its goals and improve effectiveness.

Domestic Sourcing

The practice of acquiring goods, services, or materials from suppliers located within the same country as the purchasing organization.