Congress pushes through a balanced budget policy proposal in 2021 that increases both government spending and taxation equally by $250 billion. If the MPC in the US economy is calculated to be 0.8, then such a policy would:
A. have no effect on aggregate spending, but government debt increases by $250 billion.
B. have no effect on aggregate spending or government debt.
C. increase aggregate spending by $250 billion with no change in government debt.
D. decrease aggregate spending by $200 billion, while government debt increases by $50 billion.

Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be:

Shelby bought her dream car, a 1966 red convertible mustang, with a loan from her credit union. if shelby paid 5.1% and the bank earned a real rate of return of 3.5%, what was the inflation rate over the life of the loan?

Suppose a starbucks tall latte cost $4.00 in the united states, 5.00 euros in the euro area and $2.50 australian dollars in australia. nominal exchange rates are .80 euros per dollar and 1.4 australian dollars per u.s. dollar. where does purchasing power parity hold? a. both the euro area and australia. b. neither the euro area or australia. c. the euro area but not australia. d. australia but not the euro area.