This topic contains a solution. Click here to go to the answer

Author Question: The simple Keynesian model a. overstated the effect of an increase in government spending by ... (Read 144 times)

jerry coleman

  • Hero Member
  • *****
  • Posts: 570
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

canderson530

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

A

Answer to Question 2

D





 

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

For a complete list of videos, visit our video library