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Other Fields Homework Help Economics Topic started by: NYC on Jan 12, 2016



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
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Title: Re: Which of the following statements is false?
Post by: NYC on Jan 28, 2016
Thanks for answering :)