Which statement is true?
A. During prosperity, federal government borrowing crowds out a substantial amount of private investment.
B. During recessions, federal government borrowing crowds out a substantial amount of private investment.
C. Neither statement is true.
A. During prosperity, federal government borrowing crowds out a substantial amount of private investment.
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According to the policy irrelevance proposition
A) monetary policy can effectively reduce the rate of unemployment in the short run. B) workers are not rational in the long run. C) expansionary monetary policy will only lead to a higher rate of inflation in the long run. D) the Phillips curve slopes upward, not downward as traditionally assumed.
When the interest rate is low
a. much capital is demanded and few resources are available for current consumption. b. much capital is demanded and many resources are available for current consumption. c. little capital is demanded and few resources are available for current consumption. d. little capital is demanded and many resources are available for current consumption.
A knitting factory worker who loses her job because the company has relocated the plant to another country is an example of _____.
(A) Cyclical unemployment (B) Frictional unemployment (C) Seasonal unemployment (D) Structural unemployment
At its profit-maximizing output, the firm in the above figure incurs a total cost of production of
A. $3,900. B. $9,000. C. $6,300. D. $7,000.