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Author Question: The simple Keynesian model a. overstated the effect of an increase in government spending by ... (Read 160 times)

jerry coleman

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on: Jun 30, 2018
The simple Keynesian model
 
  a. overstated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending.
  b. understated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending.
  c. overstated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent increase in investment that accompany a decrease in government spending.
  d. understated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent decrease in investment that accompany an increase in government spending.

Question 2

Advocates of the public-choice view argue that elected officials
 
  a. will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies.
  b. will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies.
  c. will always respond to both inflation and unemployment with expansionary policies.
  d. None of the above


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canderson530

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


jerry coleman

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Reply #2 on: Jun 30, 2018
Correct answers!


canderson530

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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