In the long run,
a. a larger budget deficit means a larger money supply
b. lower investment spending means slower growth of the standard of living
c. a larger budget deficit means lower consumption spending
d. a larger budget surplus means a smaller capital stock
e. government spending has no effect on the budget deficit or surplus
B
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Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate B. Buying bonds and increasing the discount rate C. Decreasing the discount rate and increasing the reserve requirement D. Decreasing the discount rate and buying bonds
Technological change, such as the information technology revolution of the 1990s can shift the aggregate supply curve outward. If, at the same time, the government is decreasing spending, the most likely outcome of these two factors is a(n)
A. increase in the price level. B. decrease in the price level. C. increase in real GDP. D. decrease in real GDP.