Crowding out is least likely to occur when deficit government spending is financed through
A) taxation.
B) reductions in consumption.
C) monetary expansion.
D) reductions in investment.
C
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The investment schedule is downward sloping and the saving schedule is upward sloping with respect to the interest rate. Suppose the equilibrium real investment per year at the market rate of interest is $1 trillion
How is this represented when real national income per year is on the horizontal axis? How is this incorporated into the consumption-function graph?
The social discount rate used in cost-benefit analysis is equal to a weighted average of the Treasury Bill rate and the long-term government borrowing rate
a. true b. false
Economics can best be described as the study of:
A. how people, institutions, and society make choices under conditions of scarcity. B. how to increase the level of productive resources so there is maximum output in society. C. how business structures influence the allocation of income among firms. D. how to use productive resources to maximize income level.
According to supply-side theory, which of the following would cause a rightward shift in the aggregate supply curve?
A. Eliminating government-funded training programs for the structurally unemployed. B. Increasing transfer payments to the unemployed. C. Eliminating job search assistance. D. Lifting trade restrictions.