Multiple Choice
In the Keynesian model of an open economy,a temporary decrease in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy.
A) lower; increase
B) lower; decrease
C) raise; increase
D) raise; decrease
Correct Answer:
Verified
Correct Answer:
Verified
Q39: An increase in foreign output would cause
Q40: There's been a real depreciation of the
Q41: In an open economy,a shift down and
Q42: Three-wheel cars made in North Edsel are
Q43: Compared with a system of fixed exchange
Q45: Describe the effects of contractionary fiscal policy
Q46: The rapid depreciation in the dollar from
Q47: In the short run in the Keynesian
Q48: When the British pound rises in value
Q49: To encourage more investment,Mexico has lowered its