A change in government spending has a larger effect on income the
A) larger the elasticity of money demand.
B) smaller the elasticity of money demand.
C) steeper the IS curve.
D) flatter the IS curve.
Correct Answer:
Verified
Q21: While deficits in the United States through
Q22: In the Keynesian model,
A)the autonomous expenditure multiplier
Q23: A change in government spending has a
Q24: If the Federal Reserve increases the money
Q25: Historically,the most important cause of government budget
Q27: Which of the following statements is (are)correct?
A)Expansionary
Q28: According to the party cycle theory,recessions
A)will be
Q29: Assuming a simultaneous reduction in income taxes
Q30: The structural deficit is the deficit that
A)is
Q31: Currently,virtually the entire deficit in the U.S.is
A)cyclical.
B)structural.
C)transitional.
D)frictional.
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