D. The authorities conduct balanced budget growth policy. What is the impact on interest rates and output?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Please explain each statement and write is it TRUE or FALSE with explanation PLEASE

D. The authorities conduct balanced budget growth policy. What is the impact on interest
rates and output?
E. An increase of one unit in government spending leads to an increase of one unit in
equilibrium output.
F. The IS curve is downward sloping since high interest rates could be achieved by
decreasing output.
Transcribed Image Text:D. The authorities conduct balanced budget growth policy. What is the impact on interest rates and output? E. An increase of one unit in government spending leads to an increase of one unit in equilibrium output. F. The IS curve is downward sloping since high interest rates could be achieved by decreasing output.
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