In a closed economy with fixed output, an increase in government spending without any change in taxes will lead to a :

Question

In a closed economy with fixed output, an increase in government spending without any change in taxes will lead to a  :

Accepted Answer

increase in the real interest rate and no change in private s

Answer

decrease in the real interest rate and an increase in private saving.aving.

Answer

increase in the real interest rate and a decrease in private saving.

Answer

decrease in the real interest rate and no change in private saving.

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