Higher full-employment deficits
A) reduce total savings, raise real interest rates, and reduce consumption spending.
B) increase total savings, lower real interest rates, and increase consumption spending.
C) increase total savings, lower real interest rates, and increase investment spending.
D) reduce total savings, raise real interest rates, and decrease investment spending.
Correct Answer:
Verified
Q55: Each of the following is a potential
Q56: In the short-run, a government budget deficit
Q57: In the short-run, the effect on real
Q58: In the short-run, a government budget surplus
Q59: In the short-run, the effect on real
Q60: An increase in the government's budget deficit
A)
Q61: A decrease in the government's budget deficit
A)
Q63: Lower full-employment deficits
A) reduce total savings, raise
Q64: Higher full-employment deficits
A) shift the IS curve
Q65: Lower full-employment deficits
A) shift the IS curve
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