Increases in import spending Select one: a. raise GDP. b. lower GDP. c. are always balanced off in GDP by changes in exports. d. may raise or lower GDP.

Assume that the following conditions exist: a. all banks are fully loaned up- there are no excess reserves, and desired excess reserves are always zero. b. the money multiplier is 5 .     c. the planned investment schedule is such that at a 4 percent rate of interest, investment =$1450 billion. at 5 percent, investment is $1420 billion. d. the investment multiplier is 3 . e.. the initial equilibrium level of real gdp is $12 trillion. f. the equilibrium rate of interest is 4 percent now the fed engages in contractionary monetary policy. it sells $1 billion worth of bonds, which reduces the money supply, which in turn raises the market rate of interest by 1 percentage point. calculate the decrease in money supply after fed's sale of bonds: $nothing billion.

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If massachusetts has a sales tax of 6 percent and new hampshire has no sales tax, how much money can be saved by buying a $1,000 television in new hampshire? $6 $16 $60 $600