Supply-siders argue that: a.reductions in government spending cut infrastructure investment which hurts private sector investment. b.increases in government spending increase infrastructure investment which helps private sector investment. c.increases in government spending causes private sector investment to fall because the government pushes up interest rates. d.reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing. e.increases in government spending causes consumption spending to fall because the government purchases push up interest rates.

Supply-sider is a concept state that EG (economic growth ) could be most productive created by(…

Answered: eductions in government spending cut…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Supply-siders argue that:

	a.	reductions in government spending cut infrastructure investment which hurts private sector investment.
	b.	increases in government spending increase infrastructure investment which helps private sector investment.
	c.	increases in government spending causes private sector investment to fall because the government pushes up interest rates.
	d.	reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing.
	e.	increases in government spending causes consumption spending to fall because the government purchases push up interest rates.

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