Multiple Choice
When government expenditures increase,the interest rate
A) increases,making the change in aggregate demand larger.
B) increases,making the change in aggregate demand smaller
C) decreases,making the change in aggregate demand larger.
D) decreases,making the change in aggregate demand smaller.
Correct Answer:
Verified
Correct Answer:
Verified
Q56: If households view a tax cut as
Q83: Initially,the economy is in long-run equilibrium.Aggregate demand
Q84: When the government reduces taxes,which of the
Q85: Supply-side economists believe that a reduction in
Q86: In a certain economy,when income is $400,consumer
Q87: The multiplier effect<br>A)and the crowding-out effect both
Q89: Scenario 34-2.The following facts apply to a
Q90: Scenario 34-2.The following facts apply to a
Q91: To reduce the effects of crowding out
Q92: Assume the MPC is 0.72.The multiplier is<br>A)4.53.<br>B)1.39.<br>C)2.57.<br>D)3.57.