Increased government borrowing stimulates private borrowing because of its effect on interest rates
a. True
b. False
Indicate whether the statement is true or false
False
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The above figure shows the market for neckties. Based on the graph, how much tax per necktie has been imposed by the government?
A) $1.25 per tie B) $1.00 per tie C) $0.75 per tie D) More information is needed to determine the tax that the government has imposed.
If expected inflation declines by 2%, what should happen to nominal interest rates according to the Fisher effect?
A) rise by 2% B) fall by 2% C) be cut in half D) double in size
U.S. financial crises begin in a period of ________
A) rising incomes B) adverse selection C) rising uncertainty D) moral hazard
Macroeconomics stresses
a. resource allocation and income distribution. b. inflation and unemployment. c. resource allocation and inflation. d. unemployment and income distribution.