question archive Suppose there is a reduction in government spending
Suppose there is a reduction in government spending
Subject:EconomicsPrice:2.88 Bought3
Suppose there is a reduction in government spending. Such a fiscal policy action will cause:
a. the natural real interest rate to rise.
b. the natural real interest rate to fall.
c. ambiguous effects on the natural real interest rate.
d. no effect on the natural real interest rate.
Option 1
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