Which of the following is an example of crowding out?
a. An increase in government spending increases interest rates, causing investment to fall.
b. A decrease in private savings increases interest rates, causing investment to fall.
c. A decrease in the money supply increases interest rates, causing investment to fall.
d. An increase in taxes increases interest rates, causing investment to fall.
a
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Refer to the above figure. Assume that B is the current long-run aggregate supply (LRAS) curve and that E is the current short-run aggregate supply (SRAS) curve
If a new discovery of large oil fields in Florida led to an increase in the nation's productive capacities, then we could expect the LRAS curve and the SRAS curve to A) remain B and E. B) move to A and D. C) move to C and F. D) move to A and F.
Most of the loanable funds available to the World Bank to lend to developing nations come from
A) the sale of oil. B) developing nations. C) the world's wealthiest nations. D) the sale of international bonds that are issued by the World Bank.
Which of the following items is (are) not considered as part of the net investment calculation?
a. installation and shipping charges b. acquisition cost of new asset c. salvage value of old equipment that is being replaced d. first year's net cash flow e. c and d
The firm earns an economic profit whenever
a. price is less than average total cost b. marginal revenue exceeds total revenue c. average variable cost exceeds total revenue d. marginal cost minus average cost is positive e. price is greater than average total cost