In the monetarist model, an increase in both government spending and taxes would
a. lead to a large increase in interest rates.
b. increase income dollar for dollar with the increase in government spending.
c. have a much smaller impact on income than in the Keynesian model.
d. all of the above.
C
Economics
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Typically, the most important determinant of private investment in an economy is
A) the inflow of foreign investment. B) the size of the capital account surplus. C) the size of the current account deficit. D) the outflow of private investment. E) the amount of domestic savings.
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At the end of the production chain that a typical economy moves up along is
a. raw material b. agriculture c. hunting and gathering d. services e. manufacturing
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