Solved

An Increase in Government Purchases Reduces National Saving as Long

Question 83

Multiple Choice

An increase in government purchases reduces national saving as long as


A) it causes interest rates to fall.
B) it causes the inflation rate to fall.
C) households' consumption falls less than one-for-one in response.
D) taxes are raised to pay for the spending.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions