According to classical economists, the government should increase government purchases when
A) the benefits of the spending exceed the costs.
B) the economy is in a recession.
C) the economy is likely to go into a recession in the next six months to a year.
D) inflation is lower than its targeted level.
A
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Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product
a. True b. False Indicate whether the statement is true or false
Changes in the federal funds rate usually result in
A) changes in both short-term and long-term interest rates with more of an effect on short-term interest rates. B) changes in both short-term and long-term interest rates with more of an effect on long-term interest rates. C) changes in both short-term and long-term interest rates with equal effect on both. D) no change in either short-term or long-term interest rates.