Exhibit 10-9 Imagine a hypothetical economy that does not have international trade. Assume that the aggregate price level is constant, the interest rate is fixed, and there are no taxes in this country. Marginal Propensity to Marginal Propensity to Save Consume (MPC) (MPS) Multiplier (PH) 0.92 (A) (B) (C) (D) 10 0.85 (E) (F) (G) 0.20 (H) Refer to Exhibit 10-9. What is the value of the marginal propensity to save (MPS) that would correctly fill in blank (A) and the multiplier that would correctly fill in blank (B)? O 0.20;5 O 0.08; 8 O 0.08: 12.5 O 0.05: 0.95Which of the following can be considered a leakage? O Exports Investment O Government purchase of goods and services O TaxesThe table given below reports the value of real GDP and its components consumption (C), investment (1), exports, and imports for two consecutive years in an economy. Table 10.3 Equilibrium Real GDP C Exports Imports Year 1 159.350 $7,500 $1.350 $1,800 Year 2 511,450 58.900 52.350 51,600 Assume that government spending is zero for this economy. Refer to Table 10.3. Assume that the economy is at equilibrium in both years, and that government spending is zero for this economy. The value of imports in year 1 is: O $1,600 O $1,450. O $1,400. O $1,300. O $1,200.If households purchase $44,000 worth of consumer goods and firms produce $50,000 worth of consumer goods, then O inventory changes are -$6,000. O inventory changes are +$6,000. O new capital goods expenditures (by firms) are $94,000. O consumer goods expenditures are $94,000.Fiscal policy refers to O efforts to balance a government's budget. O changes in the money supply to achieve particular economic goals. O changes in government expenditures and taxation to achieve particular economic goals. O the change in private expenditures that occurs as a consequence of changes in government spending.A budget surplus O occurs when government expenditures exceed tax revenues. O occurs when tax revenues exceed government expenditures. O occurs when tax revenues exceed transfer payments. O occurs when monetary policy works in the opposite direction of fiscal policy. O is an impossibility.The federal government funds deficit spending by: O issuing bonds. O redeeming bonds. O increasing taxes. O providing and selling government services