The strict crowding-out argument relies on the assumption that
a. the government must raise taxes to pay for spending, and the tax increase crowds out the stimulative effect of increased spending.
b. the total flow of saving is a fixed amount.
c. investment is invariant to interest rates, but very dependent on aggregate spending.
d. consumption will rise to absorb most of an increase in income, and investment will accordingly fall.
b
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The main contributor to growth in the HPAE according to empirical research was government industrial policies
Indicate whether the statement is true or false
The leverage ratio is calculated as
a. assets minus liabilities. b. assets divided by bank capital c. the reciprocal of the required reserve ratio d. the required reserve ratio multiplied by bank capital.
The North American Free Trade Agreement affects trade between:
A. the United States, Cuba, and Brazil. B. the United States, Canada, and Mexico. C. the United States, Puerto Rico, and Cuba. D. Brazil, Bolivia, Peru, and Columbia.
Which of the following expressions represents the real exchange rate (?)?
A) E/P. B) EP/P. C) EP. D) EP/P. E) none of the above