According to the classical model, an increase in government purchases will
a. lead to a change in the interest rate that encourages consumers to spend more
b. lead to a change in the interest rate that encourages private businesses to invest more
c. discourage private spending by increasing the price level
d. be partially offset by a decline in consumption and investment spending
e. leave total spending and output unchanged
E
Economics
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Government saving refers to ________
A) tax revenues minus transfers minus government purchases B) tax revenues plus transfers minus government consumption C) the saving rate times transfers D) national plus private saving E) none of the above
Economics
List the major non-price determinants of demand
What will be an ideal response?
Economics