Multiple Choice
If autonomous investment spending falls as a result of a decline in the expected rate of return on investment, GDP would not have to fall if the government __________ taxes or __________ government spending.
A) increased; increased
B) increased; decreased
C) decreased; increased
D) decreased; decreased
Correct Answer:

Verified
Correct Answer:
Verified
Q27: As part of the "wealth channel of
Q28: Which of the following is a plausible
Q29: If consumption equals $1,000 when income is
Q30: In the Keynesian model, if interest rates
Q31: _ consumption will _ as a result
Q33: According to Keynes, it is _ to
Q34: If consumption increases by $400 when income
Q35: According to Keynes,<br>A) prices decline as inventories
Q36: When examining the causes of unemployment, Keynes
Q37: As part of the "exchange rate effect