When the government increases spending (holding taxes constant), the budget balance _____. This causes the interest rate in the market for loanable funds to _____ and investment to _____
Fill in the blank(s) with correct word
falls, increase, decrease
You might also like to view...
Millionaires do not face the problem of scarcity.
Answer the following statement true (T) or false (F)
An appropriate fiscal policy response when aggregate demand is growing at a slower rate than aggregate supply is to cut taxes
Indicate whether the statement is true or false
If bad drivers can usually avoid being ticketed by the police, then insurance companies will
A) use one's driving record as a signal. B) use one's driving record as a screening device. C) not be able to use one's driving record as a screening device. D) request driving records directly from the police and not from the individual applicant.
Monopolies are always large firms with great economies of scale.
Answer the following statement true (T) or false (F)