If Government Spending Increases Then, Given the Real Interest Rate

question 10

Multiple Choice

If government spending increases then, given the real interest rate

• A)the demand for goods increases less than one-for-one.
• B)the demand for goods increases one-for-one.
• C)the demand for goods is unchanged, due to crowding out.
• D)the demand for goods doubles.
• E)the demand for goods increases more than one-for-one.