Which of the following assumptions is usually made about government purchases?
A) Government purchases vary directly with the interest rate.
B) Government purchases are autonomous.
C) Government purchases vary directly with the level of income.
D) Government purchases vary inversely with the level of income.

Question

Which of the following assumptions is usually made about government purchases?  
A) Government purchases vary directly with the interest rate. 
B) Government purchases are autonomous. 
C) Government purchases vary directly with the level of income. 
D) Government purchases vary inversely with the level of income.

Quizplus · Accepted Answer

The Answer is B

Which of the Following Assumptions Is Usually Made About Government