Supply-side economists argue that less government spending will
a. result in less economic stabilization
b. result in more crowding out
c. lower both rates of unemployment and inflation
d. lower the interest rate and lower private investment
e. lower the interest rate and raise private investment
E
Economics
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Figure 13-2 above illustrates an economy with an unstable commodity demand and two possible Fed policies, a constant real money supply or a constant interest. Which policy target promotes a stable economy best?
A) constant money supply, A0 to A1 B) constant money supply, B0 to B1 C) constant interest rate, A0 to A1 D) constant interest rate, B0 to B1
Economics
What are the three key features of the financial system that result from the existence of transactions and information costs?
What will be an ideal response?
Economics