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:

Verified
Correct Answer:
Verified
Related Questions
Q78: Which of the following would NOT cause
Q79: Which of the following is NOT a
Q80: In a closed economy, the total quantity
Q81: If the money market is in equilibrium,<br>A)the
Q82: An unexpected decrease in oil prices would<br>A)shift
Q84: If the demand for real money balances
Q85: An increase in the real interest rate
Q86: Why did the Fed cut interest rates
Q87: At a point below the LM curve,<br>A)there
Q88: A cut in the federal income tax