Investment Spending Decreases When the Price Level

question 282

Multiple Choice

Investment spending decreases when the price level

• A)rises and interest rates rise.
• B)rises and interest rates fall.
• C)falls and interest rates rise.
• D)falls and interest rates fall.

Comprehend the major categories of federal spending.

Understand the opportunity cost of borrowing to finance government deficits.

Compare the proportion of taxes in the U.S. to other industrially advanced countries.

Calculate the impact of taxes and government borrowing on domestic output and personal income.

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