Which of the following statements about crowding out is false?
A. It is not caused by a budget surplus.
B. It is caused by a budget deficit.
C. It can completely offset the multiplier.
D. It affects interest rates and not economic growth.
Answer: D
You might also like to view...
Which of the following will increase investment spending in the economy, holding everything else constant?
A) an increase in the federal government surplus B) an increase in transfer payments C) an increase in the budget deficit D) an increase in consumer dissavings
A competitive, profit-maximizing firm hires labor up to the point at which the wage is equal to the __________
Fill in the blank(s) with correct word
The Keynesian and classical aggregate supply analyses
A. are completely different. B. have some similarities. C. are very similar.
If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true?
A) Public saving is $500 million. B) The budget deficit is $100 million. C) The budget deficit is $500 million. D) Public saving is $100 million.