Author Question: A government budget surplus from reduced government spending (no change in net taxes) will ________ ... (Read 102 times)

littleanan · **on:** Jun 29, 2018

A government budget surplus from reduced government spending (no change in net taxes) will ________ the level of investment in the economy and ________ the level of saving (private plus public) in the economy.

A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase

Question 2

A stock market boom which causes stock prices to rise should cause

A) a decrease in consumption spending. B) a decrease in wealth.
C) an increase in consumption spending. D) a decrease in net export spending.