If Y=C+I+G but Md< Ms, then
a. interest rates must rise and output must fall.
b. both interest rates and output must fall.
c. interest rates must fall and output must rise.
d. both interest rates and output must rise.
e. none of the above.
C
Economics
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Tradable pollution permits
a. have prices that are set by the government. b. will be more valuable to firms that can reduce pollution only at high costs. c. are likely to create a higher level of total pollution. d. are less desirable than command-and-control policies to reduce pollution.
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Conservatives usually favor increasing government spending to increase aggregate demand.
Answer the following statement true (T) or false (F)
Economics