Supply-side economists argue that less government spending:
A. would make more investment capital available at lower rates of interest to the private sector.
B. will result in more crowding out.
C. causes higher rates of unemployment and inflation.
D. would cause interest rates to increase dramatically.
Answer: A
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What will be an ideal response?
The demand for money will increase when either the price level or real GDP increases
a. True b. False Indicate whether the statement is true or false
Which of the following is a sound economic reason why the government should subsidize your college education?
A. To help the school's monopoly power over private schools. B. It is too expensive. C. The profit motive would cause the private sector to overproduce education. D. Third parties, other than yourself, benefit from you being educated.
The European Union has relatively large production and income effects on Africa.
Answer the following statement true (T) or false (F)