11) In the simple Keynesian model, if the consumption function is given by C = 100 + .6(Y-T) and planned 11) investment (I) is 150, government spending (G) is 50, and taxes (T) is 100, then equilibrium income (Y) is

A) 350 B) 400 C) 750 D) 600

12) If the money supply is given as 200 and money demand is given by the equation Md=50 + 0.15Y - 12) 15r, then the LM curve will be

A) r = 25 + 0.01Y B) r = -10 + 2.25Y C) r = -10 + 0.01Y D) r = 10 + 0.01Y

13) Suppose that County A has a money demand function given by Md= 50 + 2Y - 5r, while Country B has a money demand function given by Md = 50 + 2Y -25r. From this, we can conclude that

A) the LM in A is steeper than in B

B) the LM in B is steeper than in A

C) the LM in A is vertical while the LM in B is horizontal

D) Country A is more "Keynesian" whereas Country B is more "classical" in structure.

14) In the Solow model, an increase in the savings rate 14)

A) will perrmanently increase the growth rate of output per worker (Y/N)

B) will result in a higher steady state k*

C) leads to less output due to the resulting decrease in consumption.

D) results in a decrease in the total capital stock

11) In the simple Keynesian model, if the consumption function is given by C = 100 + .6(Y-T) and planned 11) investment (1) is 150, government spending (G) is 50, and taxes (T) is 100, then equilibrium income (Y) is A) 350 B) 400 C) 750 D) 600 12) If the money supply is given as 200 and money demand is given by the equation Md=50 + 0.15Y - 12) 15r, then the LM curve will be A) r = 25 + 0.01Y B) r= -10 + 2.25Y Or= -10 + 0.01Y D) r = 10 + 0.01Y 13) Suppose that County A has a money demand function given by Md= 50+ 2Y - 5r, while Country B 13) has a money demand function given by Md = 50 + 2Y -25r. From this, we can conclude that A) the LM in A is steeper than in B B) the LM in B is steeper than in A C) the LM in A is vertical while the LM in B is horizontal D) Country A is more "Keynesian" whereas Country B is more "classical" in structure. 14) In the Solow model, an increase in the savings rate 14) A) will perrmanently increase the growth rate of output per worker (Y/N) B) will result in a higher steady state k* C) leads to less output due to the resulting decrease in consumption. D) results in a decrease in the total capital stock