8. Circle correct answer for following arguments that explore the impact of government spending ng in...
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8. Circle correct answer for following arguments that explore the impact of government spending ng in decreasing • Planed expenditure will (increase / decrease), so firms adjust production and invento- ries which has a (positive / negative) effect on output/income • Change in income/output will be (larger / smaller) than in planned expenditure. • Change in income will make people (increase / decrease) demand for real money bal- ance, result in (increase / decrease) interests rate r • Change in r will (increase / decrease) investment and thus output, though (enough / not enough) to undo initial direction of the change in output. • Over all, income/output will (increase/ decrease) and interest rate will (increase / decrease) 8. Circle correct answer for following arguments that explore the impact of government spending ng in decreasing • Planed expenditure will (increase / decrease), so firms adjust production and invento- ries which has a (positive / negative) effect on output/income • Change in income/output will be (larger / smaller) than in planned expenditure. • Change in income will make people (increase / decrease) demand for real money bal- ance, result in (increase / decrease) interests rate r • Change in r will (increase / decrease) investment and thus output, though (enough / not enough) to undo initial direction of the change in output. • Over all, income/output will (increase/ decrease) and interest rate will (increase / decrease)
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Examining the Impact of Decreasing Government Spending Planned expenditure will decrease Effect on o... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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