i 20 In the classical model of the LR closed economy, an increase in taxes T together with an increase in autonomous investment '0 will definitely I. increase private savings. out of II. decrease equilibrium real interest rate. ' Select one: 0 A. Only | is true. 0 B. Only II is true. 0 C. Both of the above are true. 0 D. None of the above is true. 118 out of 119 out of In the classical model of the LR closed economy, a reduction in taxes T will I. decrease private savings. |l. decrease equilibrium investment spending. Select one: 0 A. Only | is true. 0 B. Only II is true. 0 C. Both of the above are true. 0 D. None of the above is true. In the classical model of the LR closed economy, with MPC:O.6 and interest sensitivity parameter b:1000, an increase in taxes by 50 (AT=50) will I. reduce private savings by 20. ll. reduce equilibrium investment spending by 20. Select one: 0 A. Only | is true. 0 B. Only II is true. 0 C. Both of the above are true. 0 D. None of the above is true. '6 Which of the following is/are true in the classical model of the long run closed economy? I. An increase in autonomous investment lo will shift the demand of loans schedule to the It of right. II. An increase in autonomous investment lo will shift the supply of loans schedule to the left. Select one: 0 A. Only | is true. 0 B. Only II is true. 0 C. Both of the above are true. 0 D. None of the above is true. '7 In the classical model of the LR closed economy, an increase in autonomous consumption CO will t f I. increase the equilibrium real interest rate. I 0 ||. not change the equilibrium consumption spending. Select one: 0 A. Only | is true. 0 B. Only II is true. 0 C. Both of the above are true. 0 D. None of the above is true