Crowding-out is eliminated when the LM curve is ________, so that expansionary fiscal policy ________ the interest rate
A) vertical, does not affect
B) vertical, raises
C) horizontal, does not affect
D) horizontal, raises
C
You might also like to view...
When the natural unemployment rate ________, the short-run Phillips curve shifts ________ and the long-run Phillips curve shifts ________
A) increases; rightward; rightward B) increases; rightward; leftward C) decreases; rightward; rightward D) decreases; leftward; rightward E) increases; leftward; leftward
If a foreign producer sells a good in a country at a lower price than in its home market, this is called
A) a countervailing duty. B) a tariff offset. C) dumping. D) a reverse tariff.
When federal government spending amounts to less than tax revenues, the federal government runs a budget deficit.
Answer the following statement true (T) or false (F)
Answer the following questions true (T) or false (F)
1. The General Agreement on Tariffs and Trade (GATT) was formed to replace the World Trade Organization (WTO) because the WTO was empowered only to reduce barriers to trade in goods. The GATT is an agreement to reduce barriers to trade in goods, services, and intellectual property. 2. In 1995, the General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO). 3. Globalization is the process of countries imposing trade restrictions on other countries.