The fictional school: Oakland Community College increases the income tax rate so that tax revenues increase by $70 million. Government spending also increases by $70 million and consumption falls by $10 million. If GDP remains the same and Oakland Community College is a closed economy, then investment a. increases by $140 million. b. increases by $70 million. c. decreases by $60 million. d. decreases by $80 million.

c. decreases by $60 million

Explanation:

The formula for Gross Domestic Product (GDP) in a closed economy using the Expenditure method is;

GDP = Consumption + Government Spending + Investment

Therefore;

Investment  = GDP - Consumption - Government Spending

GDP remained the same = $0

Consumption fell by $10 million = -$10 million

Investment = 0 - (-10) - 70

Investment = - $60 million

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer///parietal;