The argument that an increase in aggregate demand, as a result of ...

[s.tung]

The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called:
 a. the crowding out effect
 b. the Ricardian equivalence theorem
  c. the budget deficit effect
 d. the budget surplus effect

Question 2

If the money supply is 80 billion, the velocity of money is 5, and real GDP is 320 billion, then the price level equals:
 a. 51.20.
  b. 20.
  c. 4.
  d. 2.75.
  e. 1.25.

[raenoj]

Answer to Question 1

b

Answer to Question 2

e

[s.tung]

Correct answers!

[raenoj]

Great! Please up vote