If the interest rate rises and government spending falls, what will happen to output, ceteris paribus?
a. It will rise.
b. It will stay the same.
c. It will fall.
d. It is uncertain what will happen.
Answer: c. It will fall.
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If marginal cost exceeds average total cost in the short run, then which is likely to be true?
A. Marginal cost is less than average variable cost. B. Average total cost is less than average variable cost. C. Average total cost is increasing. D. Average variable cost is decreasing.
Please use a figure to discuss whether or not a devaluation under a fixed exchange rate has the same long-run effect as a proportional increase in the money supply under a floating rate
What will be an ideal response?
Why can a monopoly earn economic profits in the long run?
Compared to other investments such as bonds, historically a diverse set of stocks held over a lengthy time period (for example, 30 or 40 years) has yielded a
a. low average real rate of return, and the variation in that return has been extremely high. b. high average real rate of return, and the variation in that return has been relatively small. c. low average real rate of return, and the variation in that return has been relatively small. d. high average real rate of return, and the variation in that return has been extremely high.