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An increase in government spending with no change in taxes leads to a?
Wiki User
∙ 9y ago
higher interest rate
Wiki User
∙ 9y ago
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Which is not an element of deflation?
the supply of goods and services leads to lower prices
How best to manage economic down turn?
Your question is a big one. Economic downturn is when the economy's demand is low, which leads to the relatively inactive economy. To manage this, the government will try to stimulate the economy directly (by increase government spending) or indirectly (through tax, regulations, policies) so the demand raise.
Which condition leads to an increase in supply?
an increase in the cost of raw materials
How can government budget deficit cause the level of interest rates to rise for an economy?
When price increases, interest rate tends to rise. Government budget deficit suggests high Government spending (G) which leads to the rightward shift of AD and hence the corresponding upward pressure on price. Interest rate is determined by the money demand and money supply, government budget deficit suggests that government is unable to tap into reserves to finance spending. They will have to borrow. This increases the demand for money and thus causing the interest rate to rise.
Easy money policy leads to an increase in what?
inflation
Which is not an element of deflation?
the supply of goods and services leads to lower prices
What was the purpose of the Tableau économique?
It showed the way spending in one area leads to spending in another.
How best to manage economic down turn?
Your question is a big one. Economic downturn is when the economy's demand is low, which leads to the relatively inactive economy. To manage this, the government will try to stimulate the economy directly (by increase government spending) or indirectly (through tax, regulations, policies) so the demand raise.
What is the main idea of the multiplier effect?
The main idea of the multiplier effect is that an initial increase in spending or investment leads to further economic activity and growth. This occurs as the money circulates through the economy, creating a ripple effect as it is spent and respent by individuals and businesses.
How does change to an ecosystem that results in succession benefit the ecosystem?
It leads to an increase level of biodiversity. ~Sergio
Increase in resonance structure leads to increase in stabilitywhy?
An increase in atmospheric __o[ ___ leads to an increase in the greenhouse effect
What was the purpose of the Tableau?
It showed the way spending in one area leads to spending in another.
Who leads a democracy government?
Prime Minister leads a Democracy Government.
How do you increase the length of leads of a capacitor?
You increase the length of leads of a capacitor by splicing extra length onto them.
What leads to the increase in humidity level in Mumbai?
pollution and global warming leads to increase in humidity level in mumbai
What leads to an increase in bargaining power for workers?
Factors that can increase bargaining power for workers include high demand for their skills, strong labor unions or collective bargaining agreements, favorable economic conditions leading to low unemployment rates, and government regulations that protect workers' rights.
Which countries leads the world in research and development spending?
United states
