A crowding-in effect occurs
A. When an increase in government spending leads to an increase in savings.
B. When increased government borrowing reduces the quantity of funds that businesses can borrow.
C. That increases investment each time government spending increases.
D. When the increase in GDP caused by the increased government spending makes businesses see more investment projects as profitable.
D. When the increase in GDP caused by the increased government spending makes businesses see more investment projects as profitable.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________,
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
In the figure above, at the allocatively efficient level of computer production the marginal cost of producing a computer is
A) 0 televisions per computer. B) between 0 and 3 televisions per computer. C) 3 televisions per computer. D) more than 3 televisions per computer.
If consumption in the United States was 68 percent of GDP, investment was 19 percent, government purchases were 13 percent, exports were 14 percent, and imports were 14 percent, net exports were equal to ____ percent of GDP
a. -1 b. 0 c. -28 d. 28
A decrease in the price of a commodity results in a(n)
a. decrease in supply b. decrease in quantity demanded c. increase in demand d. decrease in quantity supplied e. increase in supply