"Crowding out" refers to federal government deficits financed by:
A. borrowing which increases interest rates and thereby reduces private spending.
B. increasing taxes which reduces private spending.
C. the federal government buying foreign debt which reduces the amount of government spending and government programs.
D. reducing government spending which reduces interest rates.
Answer: A
You might also like to view...
Increases in the duration of unemployment may
A) reflect a general downturn in economic activity that depresses job openings. B) increase the number of discouraged workers. C) increase the unemployment rate. D) all of the above.
A budget deficit will be most inflationary if the aggregate
a. demand curve is very steep. b. demand curve is very flat. c. supply curve is very flat. d. supply curve is very steep.
Time lags
What will be an ideal response?
Which of the following is the primary source of high earnings in a market economy?
A) a willingness to engage in actions where you gain at the expense of others B) a willingness to work hard even if you are not productive C) a willingness to exploit workers and consumers D) the ability to provide others with things that they value highly