Q.6 In Keynesian cross model (Y=C(Y“)+I(r)+G) an increase in the money supply which causes a decrease in the rate of interest А. shifts the C+I+G line downwards В. encourage private investment even when investment is not a function of output would cause a decrease in the demand for money for precautionary С. reasons D. would cause a decrease in tax revenues both B and D are correct Е.

Q.6 In Keynesian cross model (Y=C(Y“)+I(r)+G) an increase in the money supply which causes a decrease in the rate of interest А. shifts the C+I+G line downwards В. encourage private investment even when investment is not a function of output would cause a decrease in the demand for money for precautionary С. reasons D. would cause a decrease in tax revenues both B and D are correct Е.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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