If Government Spending Increases,which of the Following Is Most Likely

question 39

Multiple Choice

If government spending increases,which of the following is most likely to occur?

• A) GDP,money demand,the interest rate,and investment spending will all increase.
• B) GDP,money demand,the interest rate,and investment spending will all decrease.
• C) GDP,money demand and the interest rate will increase,while investment spending will decrease.
• D) GDP,money demand and the interest rate will decrease,while investment spending will increase.
• E) GDP and money demand will increase,but the interest rate will not change.

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