This topic contains a solution. Click here to go to the answer

Author Question: An increase in the domestic interest rate relative to other interest rates should A) increase net ... (Read 148 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
An increase in the domestic interest rate relative to other interest rates should
 
  A) increase net exports. B) increase investment spending.
  C) decrease consumption spending. D) increase government spending.

Question 2

Suppose Congress increased spending by 100 billion and raised taxes by 100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
 
  A) There will be no change in real equilibrium GDP.
  B) Real equilibrium GDP will fall.
  C) Real equilibrium GDP will rise.
  D) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jaaaaaaa

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

C

Answer to Question 2

C





 

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

For a complete list of videos, visit our video library