Everything else held constant, changes in the interest rate affect planned investment spending and hence the equilibrium level of output, but this change in investment spending
A) merely causes a movement along the IS curve and not a shift.
B) is crowded out by higher taxes.
C) is crowded out by higher government spending.
D) is crowded out by lower consumer expenditures.
A
Economics
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What are the main forms through which foreign capital flows into LDCs? Discuss the evolution of the various forms across the last decade
What will be an ideal response?
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The theory that if the velocity of money is stable, or at least predictable, changes in the money supply have predictable effects on nominal GDP is called ________
a. velocity of money theory b. quantity theory of money c. supply of money theory d. inflation theory of money
Economics