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Author Question: Which of the following statements is true? (Read 31 times)

roselinechinyere27m

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Question 1

If the economy has automatic stabilizers built in, the multiplier will


◦ be smaller than it would have been in the absence of automatic stabilizers.
◦ be larger than it would have been in the absence of automatic stabilizers.
◦ be zero.
◦ be infinitely larger than it would have been in the absence of automatic stabilizers.

Question 2

Which of the following statements is 
true?


◦ Increases in the interest rate crowd out both consumption and investment spending, and this reduces the size of the multiplier.
◦ Increases in the interest rate crowd out both consumption and investment spending, and this increases the size of the multiplier.
◦ Increases in the interest rate have no effect on the size of the multiplier because higher interest rates cause consumption to increase, which offsets the crowding out of investment.
◦ Increases in the interest rate cause the size of the multiplier to be smaller if the economy is on the flat portion of the 
AS curve and to be larger if the economy is on the steep portion of the 
AS curve.


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Marked as best answer by roselinechinyere27m on Apr 19, 2019

vkodali

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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roselinechinyere27m

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Reply #2 on: Apr 19, 2019
Thanks



vkodali

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Reply #3 on: Apr 19, 2019
Welcome :)



 

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