Multiple Choice
If government spending increases then, given the real interest rate,
A) the demand for goods increases more than one-for-one.
B) the demand for goods increases less than one-for-one.
C) the demand for goods is unchanged, due to crowding out.
D) the demand for goods increases one-for-one.
E) the demand for goods doubles.
Correct Answer:
Verified
Correct Answer:
Verified
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