According to the market clearing model a permanent increase in government purchases leads to:
A) an increase in capital utilization.
B) a decrease in the supply of capita services.
C) an increase in the demand for capital services.
D) no change in the real rate of interest.
Correct Answer:
Verified
Q28: According to the market clearing model a
Q29: Since the end of the Korean war,
Q30: In the market clearing model without government
Q31: People might work more during a war
Q32: The real wage increase in the data
Q34: If a household's transfer payments less taxes
Q35: The model predicts that a temporary increase
Q36: If a household's transfer payments less taxes
Q37: The model predicts that a temporary increase
Q38: In the market clearing model a permanent
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