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Author Question: If the government finances an increase in government purchases with an increase in taxes, which of ... (Read 214 times)

piesebel

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on: Jun 29, 2018
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


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jjorrostieta

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

C


piesebel

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Perkypinki

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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