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  • The government a new source of revenue from its ownership of natural resources that is likely to be permanent. As a result, the government surprises everyone by cutting taxes. In response, Jeff increases his spending this year by $1000 and next year by $1000, as well. He spreads his increased spending over time because of #331
  • When a person gets an increase in current income, what is likely to happen to consumption and saving? #332
  • Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus of $1000 and he spent $500 of it, saving the other $500. What was his marginal propensity to consume? #333
  • Rosencrantz's base pay last year was $50,000 and he spent $48,000, thus saving $2,000. At the end of the year, he received a bonus of $2,000 and he spent $200 of it, saving the other $1,800. What is his marginal propensity to consume? #334
  • The fraction of additional current income that a person consumes in the current period is known as the #335
  • An increase in expected future output while holding today's output constant would #336
  • A decrease in the economy's expected future income while holding today's income constant would #337
  • Which of the following transactions would not be included in the current account of the home country? #338
  • Net exports of goods are known as #339
  • Average labor productivity is the #340
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