Generally, when the Federal Reserve lowers interest rates, investment spending ________ and GDP ________
A) decreases; increases B) increases; decreases
C) increases; increases D) decreases; decreases
C
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Which of the following is true of debt financing?
a. Elected political officials will find debt financing attractive because it allows them to provide voters with visible current benefits while pushing the more visible costs into the future. b. Debt financing is unattractive to elected political officials because voters recognize that excessive debt will lead to the future collapse of the economy. c. Debt financing is attractive to elected political officials because countries with a higher debt to GDP ratio generally grow more rapidly. d. Elected political officials will be reluctant to run budget deficits because they recognize that taxes will have to be raised in the future to pay the interest on the larger amount of outstanding debt.
Means-tested government programs tend to reduce saving. What are means-tested programs and how do they reduce saving?
The theory of liquidity preference was developed by Irving Fisher
Indicate whether the statement is true or false
a. True
b. False
In the US we expect that during recessions
a. govt spending will increase b. tax revenues will decrease c. the federal budget will have a deficit d. all