Crowding out refers to
A) increases in consumption, investment, or net exports caused by an increase in government purchases.
B) increases in tax revenues associated with increases in tax rates.
C) reductions in tax revenues associated with increases in tax rates.
D) decreases in consumption, investment, or net exports caused by an increase in government purchases.
D
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What are the two tools of fiscal policy that governments can use to affect the level of aggregate demand?
A) taxation and controlling imports B) taxation and controlling exports C) government spending and taxation D) government spending and technology improvements
Which of the following economic theories take into account the rational expectations of people in the economy?
a. Traditional Keynesian economic theory b. Monetarist economic theory c. New classical economic theory d. Classical economic theory e. New Keynesian economic theory
The Sherman Antitrust Act is primarily concerned with
a. mergers b. nationalization c. price discrimination d. monopolization e. unfair and deceptive practices
Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines.
What will be an ideal response?