Refer to the Information Provided in Figure 9

question 72

Multiple Choice

Refer to the information provided in Figure 9.5 below to answer the questions that follow. Figure 9.5
-Refer to Figure 9.5. If the economy is in equilibrium and the government decreases spending by $100 billion, equilibrium aggregate output decreases to $________ billion.

• A) 1,500
• B) 1,400
• C) 1,200
• D) 800

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Definitions:

Fair Value Hedge

A financial strategy used to offset the risk of changes in the fair value of a recognized asset or liability or an unrecognized firm commitment.

Rupee

The official currency of India, also used in other South Asian countries but may differ in value.