Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment? a. The rate of inflation would decline. b. Interest rates would fall. c. The rate of inflation would rise. d. The government spending multiplier would double.
Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment? a. The rate of inflation would decline. b. Interest rates would fall. c. The rate of inflation would rise. d. The government spending multiplier would double.
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy
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Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
a. The rate of inflation would decline.
b. Interest rates would fall.
c. The rate of inflation would rise.
d. The government spending multiplier would double.
give me correct and incorrect answer explanation and Dont use chatGPT otherwise i give multiple downvote
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