"We lose more by letting the company fail than by having the government save it." This was most likely said by an economist who believes that
A) crowding out is complete.
B) bailouts are sometimes necessary.
C) the tax multiplier is larger than the government spending multiplier.
D) the AS curve is vertical.
E) the AS curve is upward-sloping.
B
You might also like to view...
If banks borrowed from the Fed when the federal funds rate was below its target level
A) the supply of reserves would decrease and the federal funds rate could fall even further. B) the supply of reserves would increase and the federal funds rate would rise. C) the supply of reserves would decrease and the federal funds rate would rise. D) the supply of reserves would increase and the federal funds rate could fall even further.
Which of the following groups of people would be included in the official unemployment rate?
a. part-time workers b. workers temporarily laid off from jobs to which they expect to return c. discouraged workers d. all of the above
An externality is an event which
a. is external to economics. b. always brings harm to someone in the economy. c. is incidental to some market activity. d. harms the economy as a whole rather than a particular person.
Consumers buy less of a good as its price increases because
a. production costs have risen. b. substitute goods are now relatively cheaper. c. the income of consumers has effectively risen. d. the higher price will make the good more valuable to each consumer.