Multiple Choice
The total government expenditure multiplier is less than one because
A) government expenses affect labor demand.
B) labor supply reacts to interest rate changes and consumption demand is affected by taxes.
C) investment demand falls dramatically when the government goes into debt.
D) the marginal propensity to consume is less than one.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: When drawn against the real interest rate,the
Q24: An increase in credit market frictions<br>A) decreases
Q25: Any increase in the present value of
Q26: The marginal cost of investment for the
Q27: If firm-level asymmetric information becomes more severe,then<br>A)
Q29: For the firm in the real intertemporal
Q30: The demand for current consumption,as plotted against
Q31: When drawn against the real interest rate,the
Q32: In the real intertemporal model,an adverse sectoral
Q33: When drawn against the current wage,the current