Which of the following can be called a "crowding-out" effect?
A. Government borrowing crowds out private saving.
B. Exports crowd out government borrowing.
C. Government borrowing crowds out private investment.
D. Private consumption crowds out private investment.
C. Government borrowing crowds out private investment.
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The assumption of variable velocity translates to, in IS-LM analysis, __________ curves
A) downward sloping IS B) vertical IS C) upward sloping LM D) vertical LM
Which one of the following is part of the M2 definition of the money supply, but not part of M1?
A. checkable deposits B. currency held in banks C. currency in circulation D. small time deposits of less than $100,000
Covered interest arbitrage ensures
A) exchange parity. B) purchasing power parity. C) interest parity. D) All of the above.
Inflation rates over the last 40 years have generally:
A. decreased around the world. B. increased around the world. C. unchanged for developing nations and decreased for developed nations. D. decreased for developing nations and increased for developed nations.