Author Question: Which of the following does not increase U.S. aggregate demand? a. an increase in real wealth b. ... (Read 66 times)

asan beg · **on:** Jun 30, 2018

Which of the following does not increase U.S. aggregate demand?
a. an increase in real wealth
b. lower interest rates
c. an increase in imports
d. a decrease in the exchange rate value of the dollar

Question 2

Suppose equilibrium income in an economy decreases by 600 as a result of a change in government spending. If the multiplier is 3, what is the change in government spending?
a. Government spending will decrease by 1,800.
b. Government spending will decrease by 600.
c. Government spending will decrease by 200.
d. Government spending will increase by 400.
e. Government spending will increase by 1,200.