An increase in government purchases reduces national saving as long as
A) it causes interest rates to fall.
B) it causes the inflation rate to fall.
C) households' consumption falls less than one-for-one in response.
D) taxes are raised to pay for the spending.
Correct Answer:
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Q1: Purchases and sales of stocks, bonds, and
Q2: Why did the Fed cut interest rates
Q4: Which of the following is NOT a
Q5: For the goods market to be in
Q6: In a closed economy, national saving equals
A)C
Q7: In a closed economy, the total quantity
Q8: A closed economy is one in which
A)investment
Q9: In macroeconomic models, Y typically represents
A)aggregate wealth.
B)the
Q10: A general equilibrium is an outcome in
Q11: In the saving-investment diagram, an increase in
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