Because fiscal policy affects the quantity that the government borrows in financial capital markets, it not only affects aggregate demand, but it can also affect _____________ rates.

a. interest
b. employment
c. inflation
d. wage


a. interest

Economics

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With regard to its economic profits and economic losses, how is the short run different from the long run for a perfectly competitive firm?

What will be an ideal response?

Economics

Which of the following helps to explain why the supply curve of labor is upward sloping?

A) The substitution effect of a price change makes a good more expensive relative to other goods. B) The supply curve of labor is a derived supply curve; since the output supply curve is upward-sloping so is the labor supply curve. C) As the wage rate rises, the income effect causes the quantity of labor supplied to increase. D) As the wage rate rises, the opportunity cost of leisure rises.

Economics

In computing GDP, market prices are used in the calculations because a. market prices are constant over time

b. market prices do not reflect how prices change over time. c. market prices are consistently free of inflation. d. market prices can be used to combine the variety of goods and services produced in an economy into a single measure.

Economics

A television station reports that the price of coffee has increased but the quantity traded in the market has decreased. This situation would be caused by a(n):

A. Increase in demand B. Increase in supply C. Decrease in demand D. Decrease in supply

Economics