Which of the following happens if the real interest rate of an ...

[mckennatimberlake]

Which of the following happens if the real interest rate of an economy rises?
 
  A) Labor demand increases. B) Labor supply falls.
  C) Investment falls. D) Consumption increases.

Question 2

The idea that a 1 increase in infrastructure spending will generate more than 1 in economic growth is a representation of
 
  A) the multiplier effect. B) an automatic stabilizer.
  C) an outside lag. D) an inside lag.

[Zebsrer]

Answer to Question 1

C

Answer to Question 2

A

[mckennatimberlake]

Thanks for the timely response, appreciate it

[AISCAMPING]

Gracias!