Crowding out can weaken the effect of an expansionary fiscal deficit. Explain.
What will be an ideal response?
If public borrowing to finance the public deficit crowds out private borrowing and spending that would have increased aggregate demand, then the effect of government spending has been lessened. In other words, some of that spending would have taken place anyway as a result of private borrowing which has been crowded out.
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The number of adults not in the work force of a country equals 6 million and the number of individuals employed is 5 million. If there are 12 million potential adult workers in the economy, what is the current unemployment rate in this country?
A) 21 percent B) 16.67 percent C) 30.55 percent D) 12.45 percent
In the above figure, what is the minimum supply price for the fourth gallon of ice cream?
A) $2.00 B) $3.00 C) $4.00 D) $5.00
Coffee is an example of a product that has been successfully labeled and marketed based on its production method or environmental protection
Indicate whether the statement is true or false
Spot checks are typically a solution to the:
A. manager-worker, principal-agent problem. B. manager-consumer, principal-agent problem. C. consumer-worker, principal-agent problem. D. None of the statements is correct.