Government borrowing may crowd out borrowing by private interests because
A) funds are not available at any interest rate.
B) the equilibrium interest rate increases.
C) the supply curve shifts to the left.
D) None of the above.
B
You might also like to view...
The industry concentration ratio measures the
A) value of the assets owned by the largest corporations in the market. B) percentage of industry sales accounted for by the top four or eight firms. C) difference between price and marginal cost for the largest firms in the industry. D) degree of product differentiation in the market.
If everyone had the same income, then the Lorenz curve would:
a. be the line of income equality. b. bow down below the line of income equality. c. be a parallel line lying below the line of income equality. d. bow up above the line of income equality. e. be a curve that intersects the line of income equality at its mid-point.
Since countries differ in the amount of economic activity that is transacted in organized markets,
a. some countries are more productive than others. b. persons live better in some countries than others. c. international comparisons of per capita GDP are often misleading. d. comparisons between countries are totally impossible.
The more elastic the supply of a product, the more likely it is that the burden of a tax will
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. be borne by the public sector, and not by market participants.