The way in which government spending is supposed to reduce investment is by increasing ?

Related Mcqs:

If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?

A. 4 B. 20 C. 25 D. 5...

If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?

A. be reduced B. not be affected C. fall to zero D. be increased...

A fall in investment demand can result from ?

A. higher interest rates B. lower expected future profits C. more expensive capital goods D. All of the above...

An example of an expansionary monetary policy is ?

A. a reduction in the taxes banks pay on their profits. B. an increase in the required reserve ratio C. an increase in the discount rate D. the Central bank buying government securities in the open market...

When interest rate rise, other things equal, we can expect the quantity of real money holding to ?

A. fall B. increase C. not change D. None of these...