menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Economics
  4. Exam
    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    An Increase in Government Purchases Is Likely to
Solved

An Increase in Government Purchases Is Likely to

Question 132

Question 132

Multiple Choice

An increase in government purchases is likely to


A) decrease interest rates.
B) result in a net decrease in aggregate demand.
C) crowd out investment spending by business.
D) decrease money demand.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q14: Keynes used the term "animal spirits" to

Q36: When the Fed lowers the growth rate

Q62: Critics of stabilization policy argue that<br>A)there is

Q122: In recent years,the Federal Reserve has conducted

Q130: Which of the following is the most

Q131: Suppose that businesses and consumers get much

Q133: If the stock market booms,<br>A)aggregate demand increases,

Q135: According to the crowding-out effect,a decrease in

Q136: Keynes argued that<br>A)irrational waves of pessimism would

Q137: Suppose that there are both multiplier and

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines