Author Question: Assuming perfect capital mobility and a fixed exchange rate, then an increase in government spending ... (Read 105 times)

xclash · **on:** Jun 30, 2018

Assuming perfect capital mobility and a fixed exchange rate, then an increase in government spending shifts

a. the IS schedule only.
b. both the IS and LM schedules to the left.
c. both the IS and LM schedules to the right.
d. the LM schedule to the left and the IS schedule to the right.

Question 2

The neoclassical growth model argues that the only way to increase growth in the long-run is

a. increase savings rates.
b. reduce depreciation rates.
c. reduce population growth.
d. increase technology growth.