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Author Question: If the government increases spending while holding taxes constant, we expect A) a decrease in ... (Read 65 times)

lb_gilbert

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If the government increases spending while holding taxes constant, we expect
 
  A) a decrease in real saving as consumers follow suit and also increase borrowing.
  B) planned real investment spending by businesses to increase.
  C) an increase in investment spending by businesses too, as they anticipate future economic growth.
  D) interest rates to rise.

Question 2

If the nominal interest rate in an economy is 4 and the real interest rate in the economy is 2, the rate of inflation in the economy must be:
 
  A) -2. B) 4. C) 2. D) 0.5.


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scikid

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lb_gilbert

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Reply 2 on: Jun 30, 2018
Gracias!


ryhom

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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