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



Title: Which of the following sequence of events occurs in response to a contractionary fiscal policy?
Post by: NYC on Jan 12, 2016
Which of the following sequence of events occurs in response to a contractionary fiscal policy?
A) Aggregate output decreases, causing money demand to decrease, causing the interest rate to decrease and planned investment to increase.
B) Aggregate output increases, causing money demand to increase, causing interest rates to increase and planned investment to decrease.
C) Aggregate output decreases, causing money demand to increase, causing interest rates to increase and planned investment to decrease.
D) Aggregate output decreases, causing the demand for money to increase, causing interest rates to increase and planned investment to increase.


Title: Re: Which of the following sequence of events occurs in response to a contractionary fiscal policy?A
Post by: Jesslyn on Jan 26, 2016
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Title: Re: Which of the following sequence of events occurs in response to a contractionary fiscal policy?
Post by: NYC on Jan 28, 2016
Perfect answer, thank you