Figure 32-3

If budget deficits shift the money demand curve as is illustrated in Figure 32-3, which component of total expenditures will be affected the most?
A) Consumption spending
B) Government spending
C) Private investment spending
D) Net exports

Question

Figure 32-3

If budget deficits shift the money demand curve as is illustrated in Figure 32-3, which component of total expenditures will be affected the most?
A) Consumption spending 
B) Government spending 
C) Private investment spending 
D) Net exports

Quizplus · Accepted Answer

The Answer of Figure 32-3

If budget deficits shift the money demand curve as is illustrated in Figure 32-3, which component of total expenditures will be affected the most?
A) Consumption spending 
B) Government spending 
C) Private investment spending 
D) Net exports

Figure 32-3 If Budget Deficits Shift the Money Demand Curve as Is