Title: Which of the following statements is false? Post by: NYC on Jan 12, 2016 Which of the following statements is false?
A) Increases in the interest rate cause the size of the multiplier to be smaller if the economy is on the flat portion of the AS curve and to be larger if the economy is on the steep portion of the AS curve. B) Increases in the interest rate have no effect on the size of the multiplier because higher interest rates cause consumption to increase, which offsets the crowding out of investment. C) Increases in the interest rate crowd out both consumption and investment spending, and this increases the size of the multiplier. D) all of the above Title: Re: Which of the following statements is false? Post by: Jesslyn on Jan 23, 2016 Content hidden
Title: Re: Which of the following statements is false? Post by: NYC on Jan 28, 2016 Thanks for answering :)
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