The equilibrium effects of a temporary increase in government ...

[torybrooks]

The equilibrium effects of a temporary increase in government spending include
 
  A) an increase in the real wage and an increase in the real interest rate.
  B) an increase in the real wage and a decrease in the real interest rate.
  C) a decrease in the real wage and an increase in the real interest rate.
  D) a decrease in the real wage and a decrease in the real interest rate.

Question 2

Mercantilism followed feudalism. Unlike feudalism, mercantilism did not support any form of a strong central government or system of nation states.
 
  Indicate whether the statement is true or false

[isabelt_18]

Answer to Question 1

C

Answer to Question 2

False