JonathanElPro5276 JonathanElPro5276

20-05-2023
Business

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There is an increase in government expenditures financed by taxes and its overall short-run effect on output is larger than the change in government spending. Which of the following is correct
a. By themselves, both the change in output and the change in the interest rate increase desired investment
b. By themselves, both the change in output and the change in the interest rate decrease desired investment
c. By itself, the change in output increases desired investment spending and by itself the change in the interest rate decreases desired investment spending
d. By itself, the change in output decreases desired investment spending and by itself the change in the interest rate increases desired investment spending

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