Which one of the following statements is TRUE?
A) Both consumption and investment spending are components of aggregate demand.
B) Increases in investment spending are not subject to the multiplier effect.
C) Increases in government spending are not subject to the multiplier effect.
D) If the crowding out effect is present, the impact of any expansionary fiscal policy is magnified.
Correct Answer:
Verified
Q45: Expansionary fiscal policy is implemented through
A) changes
Q46: Contractionary fiscal policy is implemented through
A) changes
Q47: Crowding out occurs when
A) the aggregate supply
Q48: How is investment defined as an economic
Q49: Which of the following will decrease when
Q51: The demand for investment
A) is upward-sloping.
B) depicts
Q52: What would likely happen to investment demand
Q53: A decrease in interest rates will
A) shift
Q54: According to John Maynard Keynes, why does
Q55: Investment spending is
A) equal to real income.
B)
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