Q. Last year's, you invested in a bond eared a 7.4 percent rate of return. Illustrate what was your exact real rate of return if inflation was 4.1 percent for the year?
Q. Suppose that a certain country has an MPC of 0.9 and real GDP of $400 billion. If its investment spending decreases by $4 billion, illustrate what will be its new level of real GDP?