Multiple Choice
If government spending increases then, given the real interest rate
A) the demand for goods increases less than one-for-one.
B) the demand for goods increases one-for-one.
C) the demand for goods is unchanged, due to crowding out.
D) the demand for goods doubles.
E) the demand for goods increases more than one-for-one.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: The assumption that current-period labour supply is
Q6: How many of the following business cycle
Q7: The demand for current consumption, as plotted
Q8: If a bubble occurs in the housing
Q9: An increase in government spending<br>A)does not affect
Q11: When drawn against the real interest rate,
Q12: The representative consumer's current labour supply curve
Q13: Optimal investment is<br>A)negatively related with the real
Q14: Investment tends to be more variable over
Q15: The decrease in lifetime wealth affects