Crowding out is most likely to occur when the federal government:
A. Runs a surplus and pays off part of the debt.
B. Balances the budget.
C. Runs a deficit and raises taxes to generate more revenue.
D. Runs a deficit and borrows money to finance its spending.
D. Runs a deficit and borrows money to finance its spending.
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A weakness that could be noted about the unemployment rate is that it
A) does not account for the underutilization of workers. B) considers marginally attached workers as unemployed. C) overestimates the number of part-time workers. D) does not count part-time workers. E) counts discouraged workers as employed.
If the domestic producers of a good are hurt by a free trade, it suggests that the country:
A. is a net exporter of that good. B. has a comparative advantage in that good. C. is not able to produce that good. D. is a net importer of that good.
Suppose a wallet firm has been dumping its wastes into the local river. The government finds out and insists that the firm pay for the cost of the river cleanup. As a result, we can expect:
A. more wallets to be produced at a lower price. B. more wallets to be produced at a higher price. C. fewer wallets to be produced at a lower price. D. fewer wallets to be produced at a higher price.
Similarly to the Latin American region, the high-growth Asian economies experienced a Lost Decade in the 1980s
Indicate whether the statement is true or false