The change in aggregate demand that results from fiscal expansion changing the interest rate is called the

a. multiplier effect.
b. crowding-out effect.
c. accelerator effect.
d. Ricardian equivalence effect.


b

Economics

You might also like to view...

The shift of the short-run Phillips curve in the figure above is the result of

A) an increase in the natural unemployment rate. B) a decrease in the expected inflation rate. C) a decrease in the actual inflation rate. D) an increase in the expected inflation rate. E) a decrease in the natural unemployment rate.

Economics

On average, people in the United States spend a greater percentage of their income on health care than do people in most other countries

Indicate whether the statement is true or false

Economics

The ability of a firm to charge a price greater than marginal cost is called

A) market power. B) monopoly power. C) price-making power. D) cost-plus pricing.

Economics

A widget costs $50 in the US and CAD$53 in Canada. The current exchange rate is 1USD=1.09CAD. Given purchasing power parity, the Canadian dollar would_______to equilibrate prices

a. Appreciate b. Depreciate c. Not change d. None of the above

Economics