Other things being equal, what is the effect of deficit spending on interest rates?
A) Interest rates decline.
B) Interest rates rise.
C) Interest rates hold constant because the demand for credit decreases.
D) There is no impact unless the Federal Reserve decides to alter the money supply.
B
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At the point at which planned real consumption spending is equal to real disposable income
A) the consumption function is above the 45-degree line. B) the consumption function intersects the savings function. C) the consumption function intersects the 45-degree line. D) the consumption function is below the 45-degree line.
For country A, an export is a good produced in
A) country B and purchased by residents of country A. B) country A and purchased by residents of country A. C) country B and purchased by residents of country B. D) country A and purchased by residents of country B.