An increase in government spending that is NOT financed by an increase in taxes will cause which of the following?
A. an increase in interest rates and a reduction in planned investment
B. an increase in interest rates and an increase in planned investment
C. a reduction in interest rates and an increase in planned investment
D. a reduction in interest rates and a reduction in planned investment
Answer: A
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If people have identical tastes, then the economic rent created by a common property is
a. zero. b. as large as possible. c. positive, but not as large as possible. d. negative.
A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of private fixed capital in the year was $25 billion. Assuming stable prices, gross investment was ________.
A. $90 billion B. $50 billion C. $75 billion D. $25 billion
Who gains from international trade?
A) only the exporting nation B) only the importing nation C) both the importing and the exporting nations D) neither the importing nor the exporting nations E) The gain depends on which nation gets to keep the total revenue from the sale.
If the bidders at an oral auction have true values of $78, $72, $66, and $65, the item will sell for
a. $78 b. just under $78 c. $72 d. just over $72