In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3.
B) income rises to Y1 instead of to Y2.
C) income rises to Y1 instead of staying at YO3.
D) income rises to Y2 instead of to Y1.
D
You might also like to view...
The euro coins can be spent only in the countries where they are made, because one side of the coin has an image that is individualized for each of the countries of the European Union
a. True b. False Indicate whether the statement is true or false
A main function of money is to avoid the need for double coincidence of wants. This is the
a. medium of exchange function. b. standard of value function. c. standard of deferred payment function. d. store of value function.
John is planning ahead for retirement in a two-period world. When John is young he will earn $1 million, and when John is old and retired he will be given $50,000 from Social Security. If the interest rate between the two time periods is 7 percent, what is the slope of John's budget constraint when considering the consumption possibilities between the two periods if consumption when young is
graphed on the horizontal axis and consumption when old is graphed on the vertical axis? a. -0.89 b. -1.05 c. -1.07 d. -1.12
Under a system of fixed exchange rates, excess demand by Germans for the Swiss franc represents a potential
A. German balance-of-payments surplus with Switzerland. B. Swiss trade surplus with Germany. C. German balance-of-payments deficit with Switzerland. D. German trade surplus with Switzerland.