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

Author Question: The simple Keynesian model a. overstated the effect of an increase in government spending by ... (Read 134 times)

jerry coleman

  • Hero Member
  • *****
  • Posts: 570
The simple Keynesian model
 
  a. overstated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending.
  b. understated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending.
  c. overstated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent increase in investment that accompany a decrease in government spending.
  d. understated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent decrease in investment that accompany an increase in government spending.

Question 2

Advocates of the public-choice view argue that elected officials
 
  a. will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies.
  b. will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies.
  c. will always respond to both inflation and unemployment with expansionary policies.
  d. None of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

canderson530

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

A

Answer to Question 2

D





 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

For a complete list of videos, visit our video library