The impact of crowding out
A) is larger in an open economy as compared to a closed economy.
B) is larger in a closed economy as compared to an open economy.
C) is larger in an open economy as compared to a closed economy when fiscal policy is contractionary.
D) is larger in a closed economy as compared to an open economy when fiscal policy is contractionary.
A
You might also like to view...
The larger a country is relative to the rest of the world, the less likely it is to be able to produce a net benefit for its citizens by imposing an import tariff.
Answer the following statement true (T) or false (F)
A country's current national savings and investment identity is expressed in algebraic terms as (M – X) = I – S – (T – G). In this instance,
a. domestic investment is higher than domestic savings. b. domestic savings exceed domestic investment. c. the country is experiencing a trade surplus. d. government savings are excluded.
Suppose the demand function is Qxd = 100 ? 8Px + 6Py - M. If Px = $4, Py = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?
A. 0.04 B. 0.17 C. 0.21 D. 0.38
Your boss, the mayor of a city, thought that she'd come up with a great way to raise city revenue: increase the tax on gasoline in the city! However, she discovered that the city was actually receiving less tax revenue after the gas tax increase than before. Incensed, she declared that the economic policy prescription of taxing goods with inelastic demand must be flawed. Comment on her conclusion.
What will be an ideal response?