If the government increases spending while holding taxes constant, we expect

A) a decrease in real saving as consumers follow suit and also increase borrowing.
B) planned real investment spending by businesses to increase.
C) an increase in investment spending by businesses too, as they anticipate future economic growth.
D) interest rates to rise.


D

Economics

You might also like to view...

In the United States in 2013, the Bureau of Economic Analysis began counting spending on research and development as ________, which counts as a part of GDP

A) intermediate goods B) investment C) consumption D) depreciation

Economics

The high unemployment of 2008–2010 caused a substantial decrease in inflation, which created fears of deflation.

Answer the following statement true (T) or false (F)

Economics

The key element in preserving a monopoly is

A. government subsidy of critical enterprises. B. keeping potential rivals out of the market. C. guaranteeing availability of substitute products. D. increased advertising expenditure.

Economics

Money is the standard of exchange by which any type of goods can be purchased.

Answer the following statement true (T) or false (F)

Economics