If increased government spending has no effect on either the level of real national income or the price level,we know that
A) the economy was already at full employment.
B) the crowding out of private sector investment spending and consumption spending was complete.
C) the interest rate effect was small.
D) the government spending was on goods and services the people didn't value.
Correct Answer:
Verified
Q68: The crowding out effect is usually associated
Q69: Suppose the government increased marginal tax rates
Q70: According to supply-side economists,lower marginal tax rates
Q71: According to the new classical economists,increases in
Q72: When interest rates decrease in Canada,the value
Q74: Supply side economics refers to
A)attempts at increasing
Q75: If government spending is increased without a
Q76: The crowding-out effect refers to the tendency
Q77: The Ricardian equivalence theorem states that
A)an increase
Q78: Lower marginal tax rates can increase total
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents