Homework Help: Macroeconomics

Posted by Jeanine on Saturday, December 20, 2008 at 3:28am.

If government spending (G) becomes negatively sensitive to changes in the interest rate, what effect does this have on autonomous consumption and planned investment that is crowded out? If autonomous taxes (Ta) become positively sensitive to changes in the interest rate, what effect does this have on the amount of autonomous consumption and planned investment that is crowded out?

Macroeconomics - economyst, Saturday, December 20, 2008 at 1:32pm
Do a little research, then take a shot. What do you think?
Hint: draw IS and LM curves. What would the IS curve look (or how would it shift) if G was inversely related to r.)

Answer this Question

Related Questions

Macroeconomics - During the 1990s, the size of the federal government debt ...
Economics - Problem #2: A Consumption Function: C = Co + MPC(Yd). Suppose that ...
Macroeconomics - Which of the following aren't included in the measurement ...
macroeconomics - Assignment questions: When the government reduces its budget ...
Macro Help - Calculating Marginal Propensity to Save and Marginal Propensity to ...
Macroeconomics - For each of the following scenarios, use supply and demand ...
MacroEconomics HELP! - I just need a little help on a few questions: - Why does ...
macroeconomics 2year uni - Consider the following numerical version of the IS-LM...
econ 181 - 1. The three reasons for the downward slope of the aggregated demand ...
Econ - Consider the following consumption function. C = 200 + .75(DPI), Where C ...

For Further Reading

First Name:
School Subject:
Answer: