Solved

A Temporary Decrease in Government Purchases Causes the Real Interest

Question 98

Multiple Choice

A temporary decrease in government purchases causes the real interest rate to ________ and output to ________ in the short run,before prices adjust to restore equilibrium.


A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall

Correct Answer:

verifed

Verified

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

Related Questions