Monetarists argue that the crowding-out-effect is rather large. True or False


True

Economics

You might also like to view...

At present, approximately how many years would it take for the world's population to double?

(a) 35. (b) 58. (c) 96. (d) 211.

Economics

The IS curve will shift to the right if:

a. the government deficit decreases. b. consumer confidence decreases. c. the MPC decreases. d. taxes decrease. e. the money supply increases.

Economics

Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?

a. The real risk-free interest rate and GDP Price Index remain the same. b. The real risk-free interest rate falls, and GDP Price Index falls. c. The real risk-free interest rate falls, and GDP Price Index stays the same. d. The real risk-free interest rate rises, and GDP Price Index falls. e. The real risk-free interest rate rises, and GDP Price Index rises.

Economics

We assume that in the short run in a perfectly competitive market firms:

A. can enter and exit the market. B. can exit, but not enter the market. C. cannot enter or exit the market. D. can enter, but not exit the market.

Economics