A(n) ________ in private expenditures as a result of a(n) ________ in government purchases is called crowding out
A) increase; decrease
B) decrease; decrease
C) decrease; increase
D) increase; increase
Answer: C
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Exogenous changes in spending refer to changes in planned spending:
A. caused by changes in output. B. caused by changes in the inflation rate. C. not caused by changes in output or changes in the inflation rate. D. caused by changes in the real interest rate.
From 1980 to the mid 1990s the number of independent banking organizations in the United States
A) rose about 10%. B) stayed roughly constant. C) fell about 10%. D) fell about 35%.
A sudden expectation of future depreciation of the dollar causes funds to flow __________ the United States and the dollar to actually __________
A) out of; depreciate B) out of; appreciate C) into; depreciate D) into; appreciate
Refer to the information provided in Table 22.3 below to answer the question(s) that follow. Table 22.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 22.3. The error for point D is equal to
A. -2. B. -1. C. +1. D. +2.