Suppose the government has a budget deficit of $2 billion. If there is no Ricardo-Barro effect, how much crowding out of investment occurs?
A) some crowding out occurs, but less than $2 billion
B) more than $2 billion
C) exactly equal to $2 billion dollars
D) No crowding out occurs and investment does not change.
E) No crowding out occurs because investment increases.
A
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In the above table, if the firm sells 5 units of output, its total revenue is
A) $15. B) $30. C) $75. D) $90.
The money multiplier formula _____.
(A) Is used by the Board of Governors to decide interest rate cuts. (B) Determines the amount of new money that will be created with each demand deposit. (C) Determines the amount of funds loaned by the Federal Reserve Bank to its members. (D) Is used by the Fed to determine the amount of currency in the economy.
Advances in computing power is an example of:
A) labor-saving technological changes. B) skill-biased technological changes. C) unskilled-biased technological changes. D) labor-complementary technological changes.
The production possibilities frontier illustrates
a. the fundamental fact of scarcity. b. the opportunity cost of acquiring more of one good. c. maximum output utilizing all resources efficiently. d. All of the above are correct.