Quèstion 5If the government wants to reduce unemployment using fiscal policy, it may do so by increasing govemment spending.O A. true.O B. false. Quèstion 6The immediate determinants of investment spending are the:O A. Level of saving and the real interest rate.O B. Interest rate and the expected price level.OC. Marginal propensity to consume and the real interest rate.O D. Expected rate of return on capital goods and the real interest rate.

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Question 5 If the government wants to reduce unemployment using fiscal policy, it may do so by increasing government spending. O A. true. O B. false.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section18.5: Should The Government Balance Its Budget?

Problem 5QQ

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Question

Quèstion 5
If the government wants to reduce unemployment using fiscal policy, it may do so by increasing govemment spending.
O A. true.
O B. false.

Quèstion 6
The immediate determinants of investment spending are the:
O A. Level of saving and the real interest rate.
O B. Interest rate and the expected price level.
OC. Marginal propensity to consume and the real interest rate.
O D. Expected rate of return on capital goods and the real interest rate.

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