An increase in consumption, investment, or net exports caused by a decrease in government purchases is known as
A) crowding in. B) a closed economy.
C) crowding out. D) demand-side effects.
A
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In a two-country, two-product world, the statement "Germany enjoys a comparative advantage over France in autos relative to ships" is equivalent to
A) France having a comparative advantage over Germany in ships. B) France having a comparative disadvantage compared to Germany in autos and ships. C) Germany having a comparative advantage over France in autos and ships. D) France having no comparative advantage over Germany. E) France should produce autos.
If the payment stream of a bond remains the same and the price of the bond goes down, the
A) effective yield is unchanged. B) effective yield rises. C) effective yield decreases. D) bond is reissued to reflect the higher interest rate. E) bond is reissued to reflect the lower interest rate.
Economists often examine GNP to estimate changes in the well being of people. If one only studied GNP, which of the following would lead one to overestimate the true increases in peoples' well being?
a. Decreasing average hours of work b. Increasing life expectancy c. Decreasing levels of pollution d. Decreasing amounts of production in the home e. Increases in product quality
Supply-demand analysis shows that a tax collected from sellers is always fully shifted to buyers
a. True b. False Indicate whether the statement is true or false