Other things being equal, what is the effect of deficit spending on interest rates?
A) Interest rates decline.
B) Interest rates rise.
C) Interest rates hold constant because the demand for credit decreases.
D) There is no impact unless the Federal Reserve decides to alter the money supply.
B
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Refer to Figure 23-1. At point J in the figure above, which of the following is true?
A) The economy has achieved macroeconomic equilibrium. B) Actual inventories are less than planned inventories. C) GDP will be decreasing. D) Aggregate expenditure is less than GDP.
Which of the following would shift the FE line to the left?
A) A beneficial supply shock B) A decrease in labor supply C) An increase in consumer spending D) An increase in the money supply
Sven has a comparative advantage over Alice in cooking but not in doing the laundry. Which of the following must be true?
a. Sven must have an absolute advantage in both cooking and doing the laundry. b. Sven has a lower opportunity cost in doing the laundry. c. Sven has an absolute advantage in doing the laundry. d. Alice must have an absolute advantage in cooking. e. Sven must have a lower opportunity cost than Alice for cooking.
The existence of unemployment can be illustrated on a production possibilities curve by a(n)
A. point below or inside the surface of the curve. B. inward shift of the curve. C. movement along the curve. D. outward shift of the curve.