Multiple Choice
If an increase in interest rates reduces investment spending by $25m:
A) real GDP will decrease by $25 million
B) GDP will decrease by $25 million
C) GDP will decrease by more than $25 million
D) GDP will decrease by less than $25 million x
Correct Answer:

Verified
Correct Answer:
Verified
Q2: When the government increases its purchases, the
Q3: A reduction in direct taxes will result
Q4: When the government reduces taxes, households' take-home
Q5: Supply-side economists focus on:<br>A)how fiscal policy affects
Q6: Assuming that the crowding-out effect is $100
Q7: According to the Ricardian equivalence theory, what
Q8: Which of the following policies would Keynes
Q9: Suppose government purchases increase by $100 billion,
Q10: When the economy goes into a recession,
Q11: The global financial crisis has shown that