The financing of a government deficit increases interest rates and, as a result, reduces investment spending. This statement describes:
A. the supply-side effects of fiscal policy.
B. built-in stability.
C. the crowding-out effect.
D. the net export effect.
C. the crowding-out effect.
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________ shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good
A) The mixed market system B) Comparative advantage C) The production possibilities frontier model D) Absolute advantage
Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage
An effective price ceiling occurs when
A) the government sets a maximum price for a good above the equilibrium price. B) the government sets a minimum price for a good above the equilibrium price. C) the government sets a minimum price for a good below the equilibrium price. D) the government sets a maximum price for a good below the equilibrium price.
Hardee's announces "buy one get one free" breakfast sandwiches. This is an example of:
A. hoarding scarce resources. B. the use of incentives. C. a macroeconomic decision. D. how people assess the health benefit of fast food breakfast.