Use the graph to answer the following question:
Suppose the loanable funds market is initially in equilibrium at point A, but then implementation of fiscal policy causes crowding out to occur. After the implementation occurs, the equilibrium in the market would be best represented by
A. point A.
B. point B.
C. point C.
D. point D.
Answer: D
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Demand deposits have a ________ maturity
A) 1-year B) 3-year C) 2-year D) 0-year
Friedrich Nietzsche's views on income distribution and fairness can best be described by the statement:
A. An efficiently operating marketplace will generate an equal distribution of income without government intervention. B. Society's goal should be to maximize the welfare of the least well-off, but some inequality is necessary to meet this goal. C. A high level of income inequality is necessary to sustain the arts, beauty, education, and civilization. D. The lesser individuals' duty should be to work for the well-being of the brightest individuals.
The FDIC
A. insures most bank deposits for up to $250,000. B. eliminates the need for bank depositors to run to their bank when they hear bad news about the bank. C. has been credited with reducing the number of bank failures since 1933. D. All of these responses are correct.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.