Author Question: The increase in spending that occurs because the real value of money increases when the price level ... (Read 64 times)

tiara099 · **on:** Jun 30, 2018

The increase in spending that occurs because the real value of money increases when the price level falls is known as the

A) price effect. B) wealth effect.
C) interest rate effect. D) international trade effect.

Question 2

If government spending is 650 billion while government revenue is 950 billion, the government is said to have a

A) 300 billion budget surplus. B) 300 billion budget deficit.
C) 1,600 billion budget balance. D) 950 billion budget deficit.