Author Question: An increase in the budget deficit can be reflected in A) an increase in private saving. B) a ... (Read 65 times)

joesmith1212 · **on:** Jun 30, 2018

An increase in the budget deficit can be reflected in

A) an increase in private saving.
B) a reduction in investment.
C) a reduction in net exports.
D) all of the above
E) none of the above

Question 2

For this question, assume that the economy is initially operating at the natural level of output. A monetary expansion will cause

A) no change in the real wage in the medium run.
B) an increase in investment in the medium run.
C) a reduction in the interest rate in the medium run.
D) no change in the nominal wage in the medium run.