When crowding out occurs, interest rates typically
A. fluctuate.
B. remain constant.
C. decrease.
D. increase.
Answer: D
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If the dollar appreciates, American consumers will buy more foreign goods and services.
Answer the following statement true (T) or false (F)
In January 2009, the President submitted a bill to Congress in order to stimulate the economy and increase employment. The legislation was passed in March 2009, and the spending occurred from June 2009 to March 2011. As a result
A. the full effect of the fiscal policy change would not be felt until after March 2011 because of the effect time lag. B. the full effect of the fiscal policy change would be felt when the last of the funds were spent by the government. C. the full effect of the fiscal policy change would be felt by March 2011 because people anticipated the spending and changed their behavior accordingly. D. the full effect of the fiscal policy change would not be felt until after March 2011 because of the recognition time lag.
In economics, welfare analysis is useful to
A) gauge the validity of "mend it, don't end it." B) determine who should receive income transfers. C) determine who gains and who loses in a particular policy option. D) prove which policy option is "best."
An auction in which the price announced by the auctioneer DESCENDS is called a(n)
A) Dutch Auction. B) English Auction. C) Sealed Bid Auction. D) Descending Option Auction.