An increase in government spending with no change in taxes leads to a

A) lower income level
B) lower price level
C) smaller money supply
D) higher interest rate
E) higher bond price

Answer: D) higher interest rate

Economics

You might also like to view...

Which of the following is most likely an example of a free good?

A) Sand in aquarium B) Sand in the middle of a desert C) Sand in a children's sandbox D) Sand at the beach

Economics

The delay between when a policy action is taken and when they affect the economy is referred to as the

A) impact lag. B) action lag. C) recognition lag. D) policy lag.

Economics