Solved

If the Government Reduces Spending ________

Question 60

Multiple Choice

If the government reduces spending ________.


A) the IS curve will shift to the right
B) output will increase if interest rates remain fixed
C) consumption will increase
D) all of the above
E) none of the above

Correct Answer:

verifed

Verified

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

Related Questions

Q55: We may infer from the downward slope

Q56: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5036/.jpg" alt=" -Referring to the

Q57: The consumption function shows how _.<br>A)the marginal

Q58: A decrease in autonomous consumption _.<br>A)lowers planned

Q59: If planned expenditure is below output,as the

Q61: Consumption expenditure is 15,000,government purchases are 5,000,planned

Q62: For simplicity,the IS model assumes that neither

Q63: IS Curve Exogenous Variables and Parameters<br>Table 2

Q64: In the IS model,assuming that the real

Q65: The IS curve _.<br>A)shifts to the right