An increase in government purchases or a decrease in taxes, other things being equal, will tend to:
A) increase interest rates and increase net exports.
B) increase interest rates and decrease net exports.
C) decrease interest rates and increase net exports.
D) decrease interest rates and decrease net exports.
Correct Answer:
Verified
Q24: A larger crowding-out effect:
A)increases the magnitude of
Q25: Due to crowding-out effects, other things being
Q26: A smaller crowding-out effect:
A)increases the magnitude of
Q27: A larger crowding-out effect:
A)increases the magnitude of
Q28: Which of the following is false?
A)Expansionary fiscal
Q30: A larger crowding-out effect:
A)increases the magnitude of
Q31: A smaller crowding-out effect:
A)increases the magnitude of
Q32: A decrease in government purchases or an
Q33: A larger crowding-out effect:
A)increases the magnitude of
Q34: Which of the following is false?
A)The result
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