Crowding out suggests that
A) high taxes reduce both consumption and saving.
B) increases in consumption are always at the expense of saving.
C) increases in government spending may raise the interest rate, thereby reducing investment.
D) increases in government spending will close a recessionary gap.
C
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The principal-agent problem that exists for bank trading activities can be reduced through
A) creation of internal controls that combine trading activities with bookkeeping. B) creation of internal controls that separate trading activities from bookkeeping. C) elimination of regulation of banking. D) elimination of internal controls.
On average, middle-aged people tend to have higher incomes than younger or older people do because: a. they receive more money from the government than younger or older people do. b. they are at an age where their productivity is at its peak
c. they participate in the labor force to a lesser extent than do the young or the old. d. they are subject to lower rates of taxation than are younger or older workers.
If virtual currencies grow significantly in popularity, a potential threat is the ability of end users to:
a. Avoid paying taxes. b. Engage in illegal activities without detection. c. Increase demand without changes in a nation's "official' money supply figures. d. All of the above are true.
The relative decline in goods production compared to services produced means that we're producing fewer goods than in earlier decades.
Answer the following statement true (T) or false (F)