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An increase in government spending will completely crowd out investment if

trea48

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6 years ago

An increase in government spending will completely crowd out investment if

Question 1.

Potential output is the same as long-run aggregate supply.

▸ true

▸ false

Question 2.

An increase in government spending will completely crowd out investment if

▸ money supply is increased at the same time.

▸ money demand is not sensitive to the interest rate.

▸ the economy is operating at capacity.

▸ the economy is operating well below capacity.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 97 times

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Answer verified by a subject expert

Lori734

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6 years ago

More solutions for this book are available here

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trea48 Author

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6 years ago

Thanks for your help!!

jakechambo3

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Yesterday

Correct

amandamraz

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2 hours ago

Thank you, thank you, thank you!

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