Author Question: A drop in consumption or investment spending caused by increased government spending is referred to ... (Read 91 times)

nautica902 · **on:** Jun 30, 2018

A drop in consumption or investment spending caused by increased government spending is referred to as:
a. the multiplier effect.
b. an expansionary gap.
c. Ricardian equivalence.
d. the paradox of thrift.
e. crowding out.

Question 2

Dean bakes his famous apple pies and sells them at the local farmer's market. If the price of apples increases, the
a. supply curve for Dean's pies will increase.
b. supply curve for Dean's pies will decrease.
c. demand curve for Dean's pies will increase.
d. demand curve for Dean's pies will decrease.