U.S.government spending on goods and services:
A) can act as a temporary shock that causes short-run fluctuations.
B) can act as a policy instrument designed to mitigate short-run fluctuations.
C) represents about 20 percent of the U.S.GDP.
D) All of the above are correct.
E) None of the above is correct.
Correct Answer:
Verified
Q68: Consider the IS curve Q72: Agency problems occur when: Q74: In the long run, Q75: If we write the consumption function as Q76: A key assumption of Ricardian equivalence is: Q85: When the real interest rate rises, there Q91: The investment function is proportional to potential Q92: According to Ricardian equivalence, an increase in Q97: If a firm borrows a large sum Q104: In the long run, the marginal product
A)there is no information.
B)both
A)the
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