Suppose That C = $700,I = $200,G = $200,NX =

question 8

Multiple Choice

Suppose that C = $700,I = $200,G = $200,NX = $100,and that the money supply is equal to $400.Based upon these assumptions,velocity is equal to ________________.If consumption and velocity both rise beyond their initial levels,then it follows that another component of spending ___________ necessarily fall.

• A)3;must
• B)3;does not
• C)4;must
• D)4;does not

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Definitions:

Selected

Chosen from a group based on specific criteria or for a specific purpose.

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that offers personal liability protection to its owners, along with tax and operational flexibility.

Formed

The process of creating or establishing something, often referring to the formation of a legal or structured entity such as a company or agreement.

Advantages and Disadvantages

A consideration of the positive and negative aspects of a particular decision, action, or strategy.