When Drawn Against the Real Interest Rate,the Output Supply Curve

question 68

Multiple Choice

When drawn against the real interest rate,the output supply curve unambiguously shifts to the right if either or both of the following occur.

• A) an increase in current government spending and an increase in future government spending
• B) an increase in current government spending and a decrease in future government spending
• C) a decrease in current government spending and an increase in future government spending
• D) a decrease in current government spending and a decrease in future government spending
• E) a decrease in current government spending and an increase in the real interest rate

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