Factors causing a change in G
{"Image DocumentName": "Factors causing a change in G", "Image ImageDescription": "Changes in interest rates. An \u2191 in interest rates makes borrowing more expensive and I tends to fall. A \u2193 in interest rates makes borrowing less expensive, so firms tends to increase their I. Factors causing a change in G. Changes in political priorities. The gov may decide to \u2191 or \u2193 its expenditures in response to changes in its priorities. Efforts to influence AD through Fiscal policy: Expansionary FP: \u2193 taxes and/or \u2191 gov expenditures = more overall spending, AD shifts right. Contractionary FP: \u2191 taxes and/or \u2193 gov expenditures = less overall spending, AD shifts left.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}