Multiple Choice
In 2009 President Obama and Congress increased government spending.Some economists thought this increase would have little effect on output.Which of the following would make the effect of an increase in government expenditures on aggregate demand smaller?
A) the interest rate falls and aggregate supply is relatively flat
B) the interest rate falls and aggregate supply is relatively steep
C) the interest rate rises and aggregate supply is relatively flat
D) the interest rate rises and aggregate supply is relatively steep
Correct Answer:
Verified
Correct Answer:
Verified
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