Question: 8. Circle correct answer for following arguments that explore the impact of government spending ng in decreasing Planed expenditure will (increase / decrease), so

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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