Under the Classical assumptions, an increase in government spending causes
A) income to rise.
B) income to fall.
C) interest rates to rise.
D) interest rates to fall.
C
Economics
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Suppose output is $35 billion, government purchases are $10 billion, desired consumption is $15 billion, and desired investment is $6 billion. Net foreign lending would be equal to
A) -$4 billion. B) -$2 billion. C) $2 billion. D) $4 billion.
Economics
Total Revenue Product with six units of labor would be
A. $456.
B. $700.
C. $760.
D. $800.
Economics