Which of the following does the crowding-out effect stress?
What will be an ideal response?
Additional government borrowing to finance a larger deficit will increase the demand for loanable funds, causing real interest rates to rise.
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Results of research conducted regarding the Moving to Opportunity program found that the program had little effect on opening up employment opportunities
Indicate whether the statement is true or false
The primary tool utilized by the Federal Reserve today in conducting monetary policy is
a. the discount rate. b. reserve requirements. c. open market operations. d. selective credit controls.
In the simple circular flow model, if planned I exceeds planned S, then
a. the economy is not at equilibrium. b. the size of the circular flow is increasing. c. if the economy is at full employment, then prices will rise. d. All of these.
Which of the following represents the use of fiscal policy to achieve a fiscal stimulus?
A. Greater government expenditure or higher taxes. B. Greater government expenditure or lower taxes. C. Lower government expenditure or lower taxes. D. Lower government expenditure or higher taxes.