If the government finances an increase in government purchases ...

[piesebel]

If the government finances an increase in government purchases with an increase in taxes, which of the following would you expect to see?
 
  A) a decrease in the interest rate B) a decrease in aggregate demand
  C) an increase in the exchange rate D) an increase in net exports

Question 2

Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________.
 
  A) aggregate supply; government spending B) aggregate demand; taxes
  C) aggregate supply; taxes D) aggregate demand; government spending

[jjorrostieta]

Answer to Question 1

C

Answer to Question 2

C

[piesebel]

YES! Correct, THANKS for helping me on my review

[bassamabas]

Great answer, keep it coming