In a closed economy, in the short-run fiscal is more effective at decreasing unemployment, when: none of the the other options is correct. government spending is cut by more O the central bank is targeting output O either the marginal propensity to consume is smaller and/or the real interest rate sensitivity of investment is smaller O the central bank is targeting the real interest rate O either the marginal propensity to consume is smaller and/or the real interest rate sensitivity of investment is larger autonomous consumption is larger O larger tax increases are used autonomous investment is larger

In a closed economy, in the short-run fiscal is more effective at decreasing unemployment, when: none of the the other options is correct. government spending is cut by more O the central bank is targeting output O either the marginal propensity to consume is smaller and/or the real interest rate sensitivity of investment is smaller O the central bank is targeting the real interest rate O either the marginal propensity to consume is smaller and/or the real interest rate sensitivity of investment is larger autonomous consumption is larger O larger tax increases are used autonomous investment is larger

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Pls help with below homework, dont copy paste from google.

In a closed economy, in the short-run fiscal is more effective at
decreasing unemployment, when:
none of the the other options is correct.
government spending is cut by more
O the central bank is targeting output
O either the marginal propensity to consume is smaller and/or the real
interest rate sensitivity of investment is smaller
O the central bank is targeting the real interest rate
O either the marginal propensity to consume is smaller and/or the real
interest rate sensitivity of investment is larger
O autonomous consumption is larger
O larger tax increases are used
O autonomous investment is larger

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