If the government increases spending while holding taxes constant,we expect
A) an increase in investment spending by businesses too,as they anticipate future economic growth.
B) a decrease in saving as consumers follow suit and also increase borrowing.
C) investment spending by businesses to increase.
D) interest rates to rise.
Correct Answer:
Verified
Q37: If the government increases aggregate demand when
Q38: To shift the aggregate demand curve inward
Q39: To shift the aggregate demand curve outward
Q40: Suppose the economy is at an equilibrium
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