According to the traditional (crowding-out) view, budget deficits will
a. reduce interest rates.
b. increase interest rates and retard private investment.
c. reduce the investments of foreigners in the United States.
d. increase the capital stock available to future generations.
B
You might also like to view...
Which of the following statements is true of creative destruction?
A) Creative destruction is encouraged in economies with extractive institutions. B) Creative destruction is a phenomenon that was mostly prevalent before the year 1800. C) Creative destruction is generally bad for an economy. D) Creative destruction creates losses for some economic agents and benefits for others.
In the long run in perfect competition, no firm can earn a normal profit
a. True b. False
Which of the following would be counted in U.S. GDP?
a. The salary of an American professor teaching in England b. The value of a used U.S.-produced car purchased in the U.S. c. The value of a new U.S.-produced car purchased by a French citizen d. The value of a new French-produced car purchased by a U.S. citizen within in the U.S. e. The value of a General Electric corporate bond bought by a Japanese citizen
What are private goods? Mention two important attributes of private goods