chapter_9_long

D independent of the real interest rate and labour

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Unformatted text preview: nterest rate. E) independent of the real interest rate and labour demand is increasing the real interest rate. 39) 40) According to S. Rao Aiyagari, Lawrence Christiano and Martin Eichenbaum, output A) increases more with a temporary increase in government spending than with a permanent increase in government spending. B) decreases more with a temporary increase in government spending than with a permanent increase in government spending. C) increases less with a temporary increase in government spending than with a permanent increase in government spending. D) increases the same amount, regardless of a temporary or permanent increase in government spending. E) decreases less with a temporary increase in government spending than with a permanent increase in government spending. 40) 41) The demand for current consumption, as plotted against current income, shifts to the right due to A) a decrease in future income. B) a decrease in interest rates. C) an increase in future taxes. D) a decrease in curre...
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This document was uploaded on 02/24/2014 for the course ECON 2152 at UWO.

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