An increase in the budget deficit is the result of:(a) Expansionary monetary policy;(b) Contractionary monetary policy;(c) Expansionary fiscal policy;(d) Contractionary fiscal policy.Company tax is a:(a) Progressive, direct tax;(b) Progressive, indirect tax;(c) Proportional direct tax;(d) Regressive indirect tax.In the base year, a country produced 50 units of output at a price of R6,00 eachfor a nominal GDP of R300. This year it produces 60 units of output at a price ofR8,00 each. What is the percentage change in real GDP since the base year?(a) 5%;(b) 10%;(c) 20%;(d) 15%. If the inflation rate is 6% and Susan receives a 6% increase in income, then, overthe year, Susan's:(a) Real and nominal income both remain unchanged;(b) Real and nominal income both rise;(c) Real income rises but nominal income remains unchanged;(d) Nominal income rises but real income remains unchanged.Given the import function, Z = 300 + 2/3Y, which of the following statements iscorrect?(a) The marginal propensity to save is 1/3;(b) The induced component is 300;(c) 2/3 is the proportion of any income spent on imports;(d) None of the statements is correct.An increase of R5 billion in income in a macroeconomy leads to an increase in R3billion in consumption spending. From this information, we can determine that themarginal propensity to save in this economy is:(a) 0.6;(b) 0.5;(c) 0.3;(d) 0.4.

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An increase in the budget deficit is the result of: (a) Expansionary monetary policy; (b) Contractionary monetary policy; (c) Expansionary fiscal policy; (d) Contractionary fiscal policy.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 6PA

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Question

An increase in the budget deficit is the result of:
(a) Expansionary monetary policy;
(b) Contractionary monetary policy;
(c) Expansionary fiscal policy;
(d) Contractionary fiscal policy.
Company tax is a:
(a) Progressive, direct tax;
(b) Progressive, indirect tax;
(c) Proportional direct tax;
(d) Regressive indirect tax.
In the base year, a country produced 50 units of output at a price of R6,00 each
for a nominal GDP of R300. This year it produces 60 units of output at a price of
R8,00 each. What is the percentage change in real GDP since the base year?
(a) 5%;
(b) 10%;
(c) 20%;
(d) 15%.

If the inflation rate is 6% and Susan receives a 6% increase in income, then, over
the year, Susan's:
(a) Real and nominal income both remain unchanged;
(b) Real and nominal income both rise;
(c) Real income rises but nominal income remains unchanged;
(d) Nominal income rises but real income remains unchanged.
Given the import function, Z = 300 + 2/3Y, which of the following statements is
correct?
(a) The marginal propensity to save is 1/3;
(b) The induced component is 300;
(c) 2/3 is the proportion of any income spent on imports;
(d) None of the statements is correct.
An increase of R5 billion in income in a macroeconomy leads to an increase in R3
billion in consumption spending. From this information, we can determine that the
marginal propensity to save in this economy is:
(a) 0.6;
(b) 0.5;
(c) 0.3;
(d) 0.4.

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