The crowding-out effect implies that a government budget deficit ________ the demand for loanable funds and ________ equilibrium investment
A) increases; decreases
B) does not change; does not change
C) increases; increases
D) decreases; decreases
E) decreases; increases
A
You might also like to view...
In the dynamic aggregated demand and aggregate supply model, if AD shifts faster than AS,
A) deflation occurs. B) stagflation occurs. C) inflation occurs. D) disinflation occurs.
Refer to Figure 9-3. What is the value of domestic producer surplus after the imposition of a quota?
A) $10.75 million B) $15.75 million C) $17.25 million D) $27.75 million
The firm described in Table 8-1 has a fixed cost of ____ at its optimal level of output.
A. 2 B. 6 C. 10 D. 26
IBM's marginal rate of return on investment curve equals its
a. supply of loanable funds curve b. supply of investment curve c. marginal revenue product curve d. marginal revenue cost curve e. investment demand curve