Expansionary fiscal policy that raises the budget deficit may:
A) reduce business investment by increasing interest rates.
B) reduce business investment by reducing interest rates.
C) increase business investment by increasing interest rates.
D) increase business investment by reducing interest rates.
Correct Answer:
Verified
Q46: Crowding out will be less likely to
Q47: A decrease in the budget deficit will
Q48: If a fiscal expansion financed by government
Q49: If interest rates adjust to equate savings
Q50: When the government runs a deficit it
Q52: If private investment is relatively sensitive to
Q53: In practice, economists:
A)agree about what the level
Q54: Crowding out:
A)increases the multiplier effect, so that
Q55: Suppose the government increases spending by $30
Q56: Fiscal policy is typically:
A)extremely flexible because most
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