Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________

A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase


A

Economics

You might also like to view...

The benefit of a subsidy accrues mostly to consumers

A) in every instance. B) if Ed/Es is large. C) if Ed/Es is small. D) if Ed and Es are equal. E) in no instance.

Economics

The economic theory that suggested an alternative to the rising unemployment and inflation that the static Phillips curve analysis could not explain was the:

a. new classical economic theory. b. monetarist economic theory. c. new Keynesian economic theory. d. classical economic theory. e. traditional Keynesian economic theory.

Economics

One tradeoff society faces is between efficiency and equality. Define each term. If the U.S. government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy

Economics

Which is the most accurate statement?

A. Workfare has been a great success in moving millions of people off the welfare rolls into minimum wage jobs. B. Most people on welfare are now limited to receiving benefits for no more than 5 years during their entire adult lives. C. The Personal Responsibility and Work Opportunity Act of 1996 provides jobs or training for every adult who desires to leave welfare. D. Until the passage of welfare legislation in 1996, the welfare rolls had been rising for the previous 6 years.

Economics