Multiple Choice
Assume that investment does not depend on the interest rate.A reduction in government spending will cause which of the following for this economy?
A) no change in the interest rate
B) no change in output
C) no change in investment
D) an increase in investment
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q37: Under the reasonable dynamic assumptions discussed in
Q38: Assume that investment does not depend on
Q39: Suppose there is a simultaneous Fed sale
Q40: An increase in consumer confidence will tend
Q41: Graphically derive the IS curve from the
Q43: A fiscal contraction will tend to cause
Q44: Suppose there is a simultaneous fiscal expansion
Q45: For this question,assume that investment spending depends
Q46: Suppose there is a simultaneous fiscal expansion
Q47: Which of the following occurs as the