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According to the model a permanent decrease in government purchases does not decrease the real interest rate according to the market clearing model because:
Q1: If there is a decrease in government
Q1: Under fixed exchange rates a country's:<br>A)money supply
Q20: Which of the following is not a
Q20: The unexpected inflation rate is:<br>A)the expected inflation
Q23: In the IS-LM model, if public spending,
Q29: The real current-account balance is:<br>A)net real asset
Q39: Ricardian equivalence holds:<br>A)only for year to year
Q52: The average marginal income tax rate is:<br>A)the
Q52: If the inflation rate is 3% and
Q57: The rental price of capital is:<br>A)a dollar