When crowding out occurs, higher government spending results in higher interest rates, which in turn results in:

a. higher inflation.
b. less consumption and investment.
c. a larger debt ceiling.
d. more tax revenues.


b

Economics

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Property promised to the lender as compensation if the borrower defaults is called

A) collateral. B) deductibles. C) restrictive covenants. D) contingencies.

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Economic profits are calculated as:

A. total revenue minus explicit costs. B. total revenue minus all opportunity costs, explicit and implicit. C. total revenue minus implicit costs. D. None of these is true.

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Another term for the total quantity of output is

A) average product. B) marginal product. C) total product. D) average variable product.

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If the price of a product rises and as a result consumers decrease their purchases, then

A. demand has increased. B. demand has decreased. C. quantity demanded has increased. D. quantity demanded has decreased.

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