If an economist says that fiscal policy "crowds out," she believes that
A. government spending has caused workers to lose their jobs.
B. government subsidies have caused a monopoly in an industry.
C. government borrowing has pushed private borrowers out of the financial market.
D. tax rates are so high that workers are encouraged to leave the labor market.
C. government borrowing has pushed private borrowers out of the financial market.
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When Zane deposits $20,000 cash in his checkable deposit at the Citicorp and the Citicorp's desired reserves increase by $5,000, the desired reserve ratio is
A) 25 percent. B) 75 percent. C) 5 percent. D) 20 percent. E) $5,000.
In New Zealand one worker can produce 40 walking sticks or 10 boomerangs each hour. What is the opportunity cost of producing one walking stick?
a. 40 boomerangs b. 10 boomerangs c. 4 boomerangs d. 1/4 of a boomerang e. 1/2 worker
An asset whose value is based on the value of another asset is called a:
A. derivative. B. dividend. C. stock. D. bond.
The free-rider problem occurs when:
A. people who pay for a good or service cannot be excluded from enjoying it. B. buyers pay less than their reservation price. C. sellers receive more than their reservation price. D. people who do not pay for a good or service cannot be excluded from enjoying it.