Crowding out refers to the situation in which:
a. borrowing by the federal government raises interest rates and causes firms to invest less.
b. foreigners sell their bonds and purchase U.S. goods and services.
c. borrowing by the federal government causes state and local governments to lower their taxes.
d. increased federal taxes to balance the budget causes interest rates to increase and consumer credit decreases.
a
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A U.S. boycott against Mexican tuna caught in nets was
A) not upheld by the WTO on the grounds that killing dolphins in tuna nets does not harm the United States directly. B) not upheld by the WTO on the grounds that U.S. ships could still use nets to catch tuna. C) upheld by the WTO on the grounds that the use of nets to catch tuna also kills dolphins. D) upheld by the WTO on the grounds that nations can impose any environmental standards on other nations.
Marginal social cost includes both the marginal private cost and the marginal external cost that production imposes on society
a. True b. False
Which of the following is NOT mentioned in the textbook as one of its three goals?
A. Presenting the basic tools of economics B. Teaching how to successfully invest money in the stock market C. Promoting an understanding of markets D. Showing the ways in which the possibilities of today's economy are expanding
Most payments in the United States for goods and services are made using
A) currency. B) checking account deposits. C) traveler's checks. D) gold.