Author Question: An increase in the sensitivity of private spending (consumption, investment, and net exports) to ... (Read 103 times)

pane00 · **on:** Jun 29, 2018

An increase in the sensitivity of private spending (consumption, investment, and net exports) to changes in the interest rate ________ the government purchases multiplier.

A) may increase or may decrease B) will not change
C) will increase D) will decrease

Question 2

If net exports are positive

A) net foreign investment is also positive.
B) net foreign investment is negative.
C) capital inflows must be greater than capital outflows.
D) Both A and B are correct.