What impact would you expect an increase of $63 billion in federal government spending to have on the economy?
A) consumer spending would fall and investment spending would rise.
B) net exports would rise and consumer spending would rise.
C) consumer spending would fall and investment spending would fall.
D) savings would rise and taxation would fall.
E) consumer spending would rise and potential GDP would rise.
Correct Answer:
Verified
Q182: Crowding out will be greater
A)the less sensitive
Q183: A(n)_ in private expenditures as a result
Q183: Crowding out, following an increase in government
Q187: If policymakers implement an expansionary fiscal policy
Q188: An increase in government spending may expedite
Q190: Poorly timed discretionary policy can do more
Q191: Alberta suffered large declines in employment throughout
Q206: Crowding out refers to a decrease in
Q208: As spending on government purchases increases,income rises
Q216: Why will there be less crowding out
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