Suppose that marginal propensity to consume is equal to 0.9, and the government increases its spending by $200 billion. this new increase in spending is financed by a fresh increase in taxes equal to $200 billion. as a result of this, gdp will:

a. not change at all.
b. decrease by $200 billion.
c. increase by $2,000 billion.
d. increase by $200 billion.
e. increase by $1,800 billion.

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.