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
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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.
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.
Another term for the total quantity of output is
A) average product. B) marginal product. C) total product. D) average variable product.
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.