Which of the following would NOT lead to crowding out?
A) Expansionary fiscal policy depreciates the exchange rate.
B) Expansionary fiscal policy raises foreign income.
C) Expansionary fiscal policy raises the money supply.
D) Expansionary fiscal policy increases net exports.
Answer: D) Expansionary fiscal policy increases net exports.
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In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue
A) decreases. B) is constant. C) increases. D) may increase or decrease.
Regulators often raise prices instead of lowering them. This is designed to
A. prevent the exit of competitors. B. protect the consumer from cheap products. C. ensure high-quality products. D. ensure workers are adequately paid.
Average total cost will increase if __________
Fill in the blank(s) with correct word
When economists say that health care services are over-consumed, they mean that