Macro. Econ. MC

2010-04-06 9:02 pm

If planned investment decreases as the interest rate increases, the size of the governement spending multiplier will be
A) the same as the governement spending multiplier that would result if planned investment were independent of the interest rate.
A) largere than the governement spending multiplier that would result if planned investment were independent of the interest rate.
A) smaller than the governement spending multiplier that would result if planned investment were independent of the interest rate.
A) zero

回答 (1)

2010-04-06 10:57 pm

✔ 最佳答案

ans : the same as the governement spending multiplier that would result if planned investment were independent of the interest rate.

expenditure multiplier = 1/1-c+ct+m-i
any change in c,t,m,i will lead to change in muliplier

planned investment and interest rate increases ae totally not related to c,t,m,i
so no change in multiplier~~

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