64)Consider the following economy.

C = 1000 + 0.8YD

T = 0.25Y

I = 325

G = 225

X = 450

M = 0.1Y

The spending multiplier equals...

a.5

b.0.5

c.4

d.2

66)Fiscal policy is the use of _____ to influence GDP.

a.The money supply and government spending.

b.The money supply and interest rates.

c.Taxes and interest rates.

d.Government spending and taxes.

67)If an economy sees its capital stock and labour force double, its standard of living (measured by GDP per person) would...

a.Increase.

b.Decrease.

c.Stay the same.

d.There is not enough information.