Multiple Choice
Which of the following tends to make aggregate demand shift further to the right than the amount by which government expenditures increase?
A) the crowding-out effect
B) the multiplier effect
C) the exchange-rate effect
D) the interest-rate effect
Correct Answer:
Verified
Correct Answer:
Verified
Q42: The multiplier effect is exemplified by the
Q43: Figure 34-5.On the figure,MS represents money supply
Q44: Assume that there is no accelerator affect.The
Q45: Government purchases are said to have a<br>A)multiplier
Q46: A tax cut shifts aggregate demand<br>A)by more
Q48: The term crowding-out effect refers to<br>A)the reduction
Q49: When taxes increase,interest rates<br>A)increase,making the change in
Q50: Most economists believe that a cut in
Q51: In order to simplify the equation for
Q52: An increase in government spending initially and