A decrease in government purchases or an increase in taxes, other things being equal, will tend to:
A) increase interest rates and decrease investment as a result.
B) increase interest rates and increase investment as a result.
C) decrease interest rates and decrease investment as a result.
D) decrease interest rates and increase investment as a result.
Correct Answer:
Verified
Q69: The smaller the MPC:
A)the smaller the fraction
Q70: To offset the effect of a steep
Q71: If the government sought to end a
Q72: If there is initially a federal budget
Q73: Contractionary fiscal policy, other things being equal,
Q75: The multiplier will be smaller, other things
Q76: During a recession, total public assistance payments
Q77: To offset the effect of a steep
Q78: If there is initially a federal budget
Q79: What is the impact of a $10
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