myShelton om/af/servlet/quiziquiz action takeQuiz&iquiz; probGuid-04PLCO0A801010

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myShelton om/af/servlet/quiziquiz action takeQuiz&iquiz; probGuid-04PLCO0A801010000003b2576100d00008cteamdleod-0106&ckom; 1512697190349 0AAA680 ciples of Macro. Fall 2017 X 5 Aplia: Student arbon × TAYLOR Kelley Home Grades Personaliced Reviews DiscussionCourse Materials The Influence of Monetary and Fiscal Policy on Aggregate Demand: Algorithmic End of Chapter Greded Assignment | Read Due Sunday 12 30 17 at 11:45 PM Keep the Highest: 2 10. Problems and Applications q10 When the nvestment accelerator is large, exparsonary eal poleve nvestment accelerbor is smal ikely to lead to . short-run increase n mestrert than-the Expansowy fiscal poley is more likely to lead to short-run naease ..nvestment when the interest rate senstivity of investment . PrtSc insert Delete Backspbce 3 5 6 8 9 0

Explanation / Answer

a. More. If the investment accelerator is large, it means that the investment increase will be large due to an expansionary fiscal policy.

b. Small. Expansionary fiscal policy leads to greater government spending and higher interest rates. The effect on investment will be the largest if the sensitivity to investment is small.

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