In the short run, the government deficit spending will most likely
A) raise the unemployment rate
B) lower the inflation rate
C) raise real interest rates
D) lower private savings
E) raise net exports
Answer: C) raise real interest rates
Economics
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Indicate whether the statement is true or false
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Quantitative easing involves policies that are designed to:
A. directly increase aggregate demand through increased government spending. B. indirectly increase the money supply by decreasing interest rates. C. directly increase the money supply by a certain amount. D. indirectly increase aggregate demand through decreased taxes.
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