With graph on interest rate and planned investment (downward sloping): Planned investment could decrease from $12 million to $8 million if
A) the government increases government purchases.
B) the Fed increases the money supply.
C) the government reduces government purchases.
D) the government increases net taxes.
Ans: A) the government increases government purchases.
Economics
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Consumers have the tendency to replace a more expensive item with an even more expensive item.
a. true b. false
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Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?
a. National defense b. Education and health c. Income security d. Interest on the national debt
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