Suppose the economy is in a recession and the government decides it needs to reduce the budget deficit. Other things equal, this would tend to
A) shift the IS curve to the right.
B) shift the IS curve further to the left.
C) shift the MP curve further down.
D) shift the MP curve up.
B
You might also like to view...
Which of the following is a true statement about the multiplier?
A) The multiplier is a value between zero and one. B) The smaller the MPC, the larger the multiplier. C) The multiplier rises as the MPC rises. D) The multiplier effect does not occur when autonomous expenditure decreases.
Company towns have situated largely in the
A. East. B. South. C. Midwest. D. West.
Which of the following is an example of an investment in human capital?
A. A firm replaces manually controlled production with a computer controlled procedure. B. A firm pays for workers to take college classes. C. A firm purchases new equipment for a manufacturing process. D. A chemical firm supports research to develop new chemicals.
Refer to the information provided in Table 25.3 below to answer the question(s) that follow.Table 25.3
Refer to Table 25.3. Total loans of People's Bank equal
A. $100,000. B. $400,000. C. $500,000. D. $800,000.