Which of the following tends to make aggregate demand shift further to the right than the amount by which government expenditures increase?
a. the crowding-out effect
b. the multiplier effect
c. the exchange-rate effect
d. the interest-rate effect
b
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Indicate whether the statement is true or false
As output and employment contracted during the early 1930s, policy makers
What will be an ideal response?
Tests for statistical significance must be performed
A. because the TRUE values of the intercept and slope parameters are random variables. B. because the ESTIMATED values of the intercept and slope parameters are not, in general, equal to the true values of the intercept and slope parameters. C. because the computed t-ratios are random variables and may be too large to provide evidence that b is not equal to zero. D. in order to determine whether or not the parameter estimates are far enough away from zero to conclude that the true parameter values are not equal to zero. E. both b and d
What is the effect of a country's saving rate on trade deficits?
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