Which of the following will not cause aggregate private spending to decrease?
A) a reduction in expected future real interest rates
B) a reduction in government spending
C) an increase in future taxes
D) all of the above
E) none of the above
A
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A rise in the U.S. price level brings a ________ in the price of U.S. exports relative to imports that ________ exports of U.S. goods, bringing ________ in the quantity of U.S. real GDP demanded
A) fall; increases; an increase B) rise; decreases; a decrease C) fall; decreases; a decrease D) rise; increases; a decrease E) rise; increases; an increase
Customers are usually more willing to pay more for the first unit of a good they purchase than for the second, third, or subsequent units. This implies that
A) typical consumers are irrational. B) firms are using non-linear price discrimination. C) firms are unable to determine their customers' reservation prices. D) typical consumers have a downward sloping demand curve.