What will be the effects of a decrease in government spending?
a. an increase in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending
b. a decrease in equilibrium GDP, a decrease in money demand, an increase in the interest rate, and a decrease in investment spending
c. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and an increase in investment spending
d. a decrease in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending
e. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and a decrease in investment spending
D
You might also like to view...
Average duration of unemployment is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market price will be
A) below P1. B) between P1 and P3. C) above P3. D) P2.
One major fault with factor pricing analysis is that marginal productivity theory merely attempts to justify the income distribution that the capitalist system yields
a. True b. False Indicate whether the statement is true or false
Oligopoly is characterized by a few sellers offering similar products, whereas monopolistic competition is characterized by many sellers offering differentiated products
a. True b. False Indicate whether the statement is true or false