An increase in government spending will have the greatest ...

[melly21297]

An increase in government spending will have the greatest expansionary impact on the economy if it is combined with:
 a. an increase in tax revenue equal to the increase in spending.
  b. a decrease in tax revenue equal to the increase in spending.
  c. unchanged tax revenue.
  d. none of these is true.

Question 2

A decrease in the supply of money, other things being equal, will raise the equilibrium interest rate.
 a. True
  b. False
  Indicate whether the statement is true or false

[C.mcnichol98]

Answer to Question 1

b

Answer to Question 2

True

[melly21297]

TYSM

[Dominic]

Gracias!