Which of the following economic variables is affected when the government adopts countercyclical fiscal policy?
A) Government spending B) Bank reserves
C) Interest rates D) M2 measure of money supply
Question 2
Factors that cause an increase in the demand for credit at a given real interest rate cause:
A) the credit demand curve to shift to the left.
B) an upward movement along the credit demand curve.
C) a downward movement along the credit demand curve.
D) the credit demand curve to shift to the right.
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