Answer:
rise by $40 billion
Explanation:
Calculation to determine what the investment will be
Investment=$100 billion*(100%-60%)
=$100 billion*40%
=$40 billion
Therefore the investment will rise by $40 billion
Answer:
c. $1,400
Explanation:
Gross income
= Interest on U.S. government bonds + Interest on a Federal income tax refund + Gain on the sale of Madison County school bonds
= $700 + $200 + $500
= $1,400
Therefore, Heather must report gross income in the amount of $1,400.
Answer:
C) budget constraint
Explanation:
The budget constraint is a graph of all the combinations of goods and services a consumer can purchase given prices and income of the consumer.
The absolute slope of the budget constraint is the relative price of the two goods represented on the graph.
I hope my answer helps you
Answer:
What happens to the wealth effect of a change in the aggregate price level as a result of this allocation of assets?
- The consumers' wealth effect will rise since the slope of the aggregate demand curve increases as the prices of assets increases, i.e. the slope of the aggregate demand curve becomes steeper as customers become wealthier.
Will aggregate demand still be downward sloping? Why or why not?
- The aggregate demand curve sill still be downward sloping because as the price of a good or service increases, the quantity demanded will still decrease. An inverse relationship exists between price changes and quantity demanded.
The answer is C hope it helps
