A temporary increase in government purchases causes the real interest rate to ________ and output to ________.
A) rise;rise
B) rise;fall
C) fall;rise
D) rise;remain unchanged
Correct Answer:
Verified
Q5: A rise in expected future output that
Q6: The FE line shows the level of
Q7: The FE line is vertical because the
Q8: The IS curve would unambiguously shift up
Q9: Which of the following would shift the
Q11: Classical economists argue that an increase in
Q12: A temporary supply shock,such as an increase
Q13: Which of the following would shift the
Q14: Which of the following will shift IS
Q15: A decline in wealth that doesn't affect
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents