Whenever government spending is a substitute for private spending
A. the effects of expansionary fiscal policy are dampened.
B. the Ricardian equivalence theorem holds.
C. there is a direct multiplier effect.
D. interest rates will rise.
Answer: A
Economics
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If a monopolist's price is $50 at 63 units of output and marginal revenue equals marginal cost, and average total cost equals $43, then the firm's total profit is
A) $3,150. B) $2,709. C) $441. D) $7.
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If a piece of currency must be accepted for payment because the government says so, the currency is called
a. commodity money b. money backed by gold c. high-powered money d. greenbacks e. fiat money
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