There is no limit for domestic central bank intervention

According to this Application, which of the following is NOT a strategy that the government can pursue to address the rising cost of federal retirement and health care programs?

A) increase the age at which retirement benefits begin to be paid B) promote government saving and investment to increase real GDP over time C) borrow from the public to finance the programs D) reform the health care system to encourage more competition to reduce health care expenditures

Based on our understanding of the model presented in Chapter 3, we know with certainty that an equal and simultaneous reduction in G and T will cause

A) an increase in output. B) no change in output. C) a reduction in output. D) an increase in investment.