Holding everything else constant,when the government uses an expansionary policy in the presence of a deficit,it will result in a(n) :
A) increase in the equilibrium interest rate in the loanable funds market.
B) increase in the level of private investment spending.
C) increase in government savings.
D) fall in the equilibrium interest rate in the loanable funds market.
Correct Answer:
Verified
Q365: The budget balance equals:
A)taxes minus government spending.
B)taxes
Q369: A government has a budget deficit in
Q374: Alison lends $100 to Vanessa for 1
Q376: Suppose an investment project is projected to
Q383: Crowding out results in a(n):
A)decrease in private
Q387: If a country has a positive capital
Q391: When portions of investment spending are financed
Q392: In an open economy:
A)a country with a
Q397: In the loanable funds market, savers:
A)demand funds.
B)supply
Q398: Financial assets:
A)are paper claims that provide the
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