The crowding-out effect is the tendency for
A) higher government budget deficits to increase total savings.
B) lower private saving to decrease investment.
C) higher government budget deficits to decrease investment.
D) higher private savings to decrease government budget surpluses.
E) lower private saving to increase the budget deficit.
C
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Guiseppe Vibrato was so sick of his job that he quit, and now spends his days at the tavern, saying he never wants to work again. Guiseppe is
A) a discouraged worker. B) a discouraged drinker. C) unemployed. D) neither employed nor unemployed.
Suppose the long-run aggregate supply curve shifts to the right as a consequence of the discovery of more efficient production technologies. Given unchanged aggregate expenditure, this implies a rise in long-run equilibrium output and a decline in the equilibrium price level
a. True b. False Indicate whether the statement is true or false
Which of the following is not true when the price of a good or service falls?
a. Buyers who were already buying the good or service are better off. b. Some new buyers, who are now willing to buy, enter the market. c. The total consumer surplus in the market increases. d. The total value of purchases before and after the price change is the same.
Gold is a major reserve asset that is currently used in most official reserve transactions.
Answer the following statement true (T) or false (F)