On which of the following government spending projects would the crowding out effect most likely be the greatest?
A) government spending on farm subsidies
B) government spending on improvements in infrastructure
C) government spending on research and development
D) government spending on education
A
You might also like to view...
The economic way of thinking assumes a politician ignores
A) the costs of her actions. B) the benefits of her actions. C) her own interests after taking the oath of office. D) all of the above. E) none of the above.
When prices rise, the purchasing power of money
A) rises. B) falls. C) is unaffected. D) may rise, fall, or be unaffected depending upon circumstances.
According to evidence provided by the U.S. government, the median black
a. woman is paid roughly the same as the median white woman. b. woman is paid roughly the same as the median black man. c. man is paid 21 percent less than the median white man. d. All of the above are correct.
Other things the same, a decrease in the U.S. interest rate
a. induces firms to invest more. b. shifts money demand to the left. c. makes the U.S. dollar appreciate. d. increases the opportunity cost of holding dollars.