Crowding out can be avoided temporarily if the government's debt is internationalized.

Answer the following statement true (T) or false (F)


True

If foreigners buy the U.S. government's debt at existing interest rates, there will be no upward pressure on interest rates and no crowding out.

Economics

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Which of the following statements is TRUE?

A) The voting power of a nation in the International Monetary Fund is determined by its quota subscription. B) The voting procedure in the International Fund is determined by the World Bank. C) The voting power of a nation in the International Monetary Fund is called special drawing rights. D) All nations that belong to the International Monetary Fund have equal voting power.

Economics

Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio?

What will be an ideal response?

Economics

Refer to Table 11.1. If the marginal propensity to consume decreases to 0.05 (MPC = 0.05), what is the new equilibrium level of output?

A) 2,366.67 B) 3,166.67 C) 3,550.00 D) 4,750.00

Economics

Which of the following is NOT a government-run income maintenance program?

A) Social Security B) unemployment compensation C) temporary Assistance of Needy Households D) life insurance

Economics