Multiple Choice
Suppose there is a fiscal contraction.Which of the following is a complete list of the variables that must decrease?
A) consumption
B) consumption and investment
C) consumption and output
D) consumption, output and the interest rate
E) consumption, output and investment
Correct Answer:
Verified
Correct Answer:
Verified
Q16: If government spending and taxes decrease by
Q17: An increase in government spending will likely
Q18: What is the IS relation? Explain why
Q19: Suppose there is a simultaneous central bank
Q20: Explain the determinants of investment.Include in your
Q22: When the central bank pursues contractionary monetary
Q23: Based on our understanding of the IS-LM
Q24: A reduction in the aggregate price level,P,will
Q25: A reduction in consumer confidence will likely
Q26: An increase in the money supply will