Crowding out refers to the effect that:
A. C and I are completely unrelated to changes in G.
B. C and I are indirectly affected by changes in G.
C. C is directly affected by changes in G.
D. C and I are directly affected by changes in G.
Answer: B
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
From a firm's point of view, when the demand for a good has a price elasticity of 0.5, then, all things remaining the same, a(n):
A) increase in the price of the good will decrease the firm's revenue. B) increase in the price of the good will increase the firm's revenue. C) change in the price of the good will not affect the firm's revenue. D) change in the price of the good will not affect the quantity of the good demanded by consumers.
Expansionary monetary policy involves an increase in the money supply and a fall in interest rates, leading to a positive expansion in income
Indicate whether the statement is true or false
Many governments around the world attempt to improve the incomes of commodity producers by taking steps to increase the commodity price in the domestic market
Although this may reduce quantity demanded for the product, the action may be effective because: A) commodity supply tends to be inelastic, so quantity does not decline by much. B) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities. C) commodity demand tends to be inelastic, so higher prices generate higher sales revenue. D) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities.