If government saving is negative (that is, if government is running a budget deficit), crowding out may occur. Crowding out could lead to all of the following EXCEPT
A) higher interest rate.
B) decreased private saving.
C) decreased quantity of investment.
D) a smaller capital stock in the future.
B) decreased private saving
You might also like to view...
Using the information in the table above, calculate the unemployment rate
A) 53.3 percent B) 30.8 percent C) 13.3 percent D) 7.7 percent
Refer to the provided graph. At which point does marginal product (MP) equal average product (AP) at a specific level of output?
A) point B B) point D C) point A D) point C
Which of the following statements correctly describes a total product curve?
A) Points above the total produce curve are efficient. B) The curve shows that output always increases as labor employed increases. C) The curve separates attainable outputs from unattainable outputs. D) The curve shows minimum levels of output. E) The curve first falls, reaches a minimum, and then rises.
Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good A is ____________ unit(s) of good B.
What will be an ideal response?