Supply-siders argue that:
A. reductions in government spending cut infrastructure investment which hurts private sector investment.
B. increases in government spending increase infrastructure investment which helps private sector investment.
C. increases in government spending causes private sector investment to fall because the government pushes up interest rates.
D. reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing.
Answer: C
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Discuss the difference between a private cost and a social cost
What will be an ideal response?
In Macroland, 500,000 of the 1 million people in the country are employed. Average labor productivity in Macroland is $20,000 per worker. Real GDP per person in Macroland totals:
A. $40,000. B. $15,000. C. $10,000. D. $1,000.
The real rate of interest is the ______ rate of interest minus the anticipated inflations
Fill in the blank(s) with the appropriate word(s).
The joining of firms that are producing or selling a similar product is known as
A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) economies to scale.