Crowding out is associated with:
A. a decrease in government spending caused by a shortage of available credit.
B. a reduction in business investment resulting from an increase in government borrowing and higher interest rates.
C. an increase in business investment resulting from an increase in government borrowing and higher interest rates.
D. an increase in private savings caused by higher future tax liabilities when government increases borrowing.
Answer: B
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Other things being equal, the marginal revenue product (MRP) curve for a competitive seller
A) lies below the MRP curve for a monopolist. B) is identical to the MRP curve for a monopolist. C) lies above the MRP curve for a monopolist. D) is upward sloping whereas a monopolist has a downward sloping MRP curve.
Moral hazard occurs when an informed party benefits in an exchange by taking advantage of knowing more than the other party
a. True b. False Indicate whether the statement is true or false
Which of the following is true? a. U.S. imports are considered a credit item in the balance of payment, because the dollars sold to buy the necessary foreign currency add to foreign claims against U.S. buyers. b. When the U.S. runs a trade deficit in goods and services with the rest of the world, the rest of the world must be running a trade surplus in goods and services with the U.S. c. When
the U.S. runs a trade deficit in goods, it must run a trade surplus in services. d. None of the above is true.
A local utility is an example of
A) perfect competition. B) oligopoly. C) monopoly. D) monopolistic competition.