Which of the following will increase investment spending in the economy, holding everything else constant?
A) an increase in the federal government surplus
B) an increase in the budget deficit
C) an increase in consumer dissavings
D) an increase in transfer payments
Answer: A
Economics
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Assume expectations of prices are correct but expectations of productivity adjust slowly. Use the PS/WS relations, graphically illustrate and explain the effects of a decrease in productivity growth on the natural rate of unemployment
What will be an ideal response?
Economics
When commercial banks borrow reserves from the Fed, the quantity of reserves in the banking system ________ and, ultimately, the money supply ________.
A. increases; increases B. decreases; decreases C. increases; decreases D. decreases; increases
Economics