The crowding-out effect occurs when household consumption and investment spending decrease as a result of financing a budget deficit
a. True
b. False
Indicate whether the statement is true or false
True
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In Figure 4-10 above, if the Fed's goal is to hold income constant, contractionary fiscal policy combined with the Fed's response takes us from points
A) B to D. B) D to B. C) A to C. D) C to A.
Other things remaining the same, a decrease in inflationary expectations causes the velocity of money to:
a. Rise. b. Fall. c. Not change.
Which of the following is closest to the future value of a $40,000 deposit earning 3 percent interest annually after 5 years?
A. $46,371 B. $41,150 C. $41,282 D. $46,021
Which statement is true?
A. Frank Knight believed that capital is surplus value that has been stolen from the worker. B. Joseph Schumpeter believed that risk-bearing is no part of the entrepreneurial function. C. Karl Marx believed that profits were the capitalist's reward for innovation. D. None of the statements are true.