In Figure 4-6 above, suppose we are initially at point 2. A reduction in government spending causes income to change by ________ and the interest rate to change by ________ than would be the case in the Chapter 3 model

A) more, more
B) more, less
C) less, more
D) less, less

C

Economics

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Marginal revenue:

A) is the change in total revenue associated with producing one more unit of output. B) is the product of the price of a good and its quantity sold minus the cost of production. C) is always greater than the total revenue. D) is always equal to the price of the good.

Economics

If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5

a. True b. False Indicate whether the statement is true or false

Economics