In the long run, if government increases spending ________. A) ...

[charchew]

In the long run, if government increases spending ________.
 
  A) interest rates decrease
  B) it crowds out private investment
  C) saving increases
  D) all of the above
  E) none of the above

Question 2

Consider the two graphs above. Suppose that businesses expect to hire more workers. This would ________ the desired level of the capital stock, as depicted in graph ________.
 
  A) increase; B
  B) increase; A
  C) decrease; B
  D) decrease; A

[krakiolit]

Answer to Question 1

B

Answer to Question 2

B

[charchew]

TYSM

[gcook]

Excellent