According to the Keynesian ideas on Aggregate Demand, a macroeconomist would most likely expect business expenditure to increase when ... Group of answer choices a. Interest rates are low and expected returns are low b. Interest rates are high and expected returns are high c. Interest rates are low and expected returns are high d. Interest rates are high and expected returns are low

According to the Keynesian ideas on Aggregate Demand, a macroeconomist would most likely expect business expenditure to increase when ... Group of answer choices a. Interest rates are low and expected returns are low b. Interest rates are high and expected returns are high c. Interest rates are low and expected returns are high d. Interest rates are high and expected returns are low

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 16P

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Similar questions

According to Keynesian theory, the natural forces in the economy may not quickly move the economy toward potential real GDP. a. True b. False
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Suppose aggregate demand is too high bring about the Natural Real GDP level. A Keynesian policy prescription would call for a(n) lose this inflationary gap. a. increase in government spending or decrease in taxes b. increase in government spending or taxes decrease in government spending or increase in taxes d. decrease in government spending or taxes to
According to Keynesian business cycle theory, if consumption and investment fall, what will happen to government spending? A. It will fall B. It will stay the same C. It will rise D. Insufficient information to answer the question
The keynesian school of thought argues that during a recession… a) Governments should reduce spending and increase taxes b) Governments should increase spending and reduce taxes c) Government should increase spending and increase taxes d) Government should reduce spending and reduce taxes.
According to the Keynesian macroeconomic model, the level of intended investment... (check all that apply) is autonomous is determined by the inflation rate depends on the level of optimism or pessimism among investors is determined by savings and the interest rate is a function of the level of output and income is a function of the unemployment rate
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The simple Keynesian model a. understated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent decrease in investment that accompany an increase in government spending. b. overstated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent increase in investment that accompanies a decrease in government spending. c. overstated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending. d. understated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending.
Which of the following would increase current Aggregate Demand in an country? Select one: a) Highest interest rates b) Avaialbel of less savings schemes c) Falling growth d) Higher taxes e) Precautionary savings