Multiple Choice
An increase in government spending
A) increases the interest rate and so investment spending increases.
B) increases the interest rate and so investment spending decreases.
C) decreases the interest rate and so increases investment spending increases.
D) decreases the interest rate and so investment spending decreases.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: If taxes<br>A)increase,then consumption increases,and aggregate demand shifts
Q24: An decrease in taxes shifts aggregate demand<br>A)to
Q26: Which of the following sequences best represents
Q27: Tax increases<br>A)and increases in government expenditures shift
Q29: Figure 34-6.On the left-hand graph,MS represents the
Q30: In a certain economy,when income is $1000,consumer
Q31: Sometimes during wars,government expenditures are larger than
Q32: Which of the following illustrates how the
Q33: Suppose the multiplier has a value that
Q177: The government builds a new water-treatment plant.