When drawn against the real interest rate, the output supply curve unambiguously shifts to the right if either or both of the following occur.
A) an increase in current government spending and a decrease in future government spending
B) a decrease in current government spending and an increase in the real interest rate
C) a decrease in current government spending and a decrease in future government spending
D) an increase in current government spending and an increase in future government spending
E) a decrease in current government spending and an increase in future government spending
Correct Answer:
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Q14: The marginal rate of substitution of future
Q15: When drawn against the real interest rate,
Q16: The representative consumer's current labour supply curve
Q17: The equilibrium effects of a prospective future
Q18: A rational bubble is
A)when everyone behaves optimally
Q20: The total government expenditure multiplier is less
Q21: For the economy as a whole, investment
Q22: Investment will be more variable if the
Q23: The marginal benefit from investment is
A)what one
Q24: A temporary increase in government spending that
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