The concept that increased government spending will lead to lower investment and consumer spending is referred to as the

A. inflationary effect.
B. Keynesian effect.
C. crowding-out effect.
D. recessionary effect.


Answer: C

Economics

You might also like to view...

The Cost-Benefit Principle:

A. provides little insight into how people actually chose between alternatives. B. provides an abstract model of a rational person should choose between alternatives. C. describes how people behave once they have enough education. D. fully captures how people choose between alternatives.

Economics

If the four-firm concentration ratio for an industry is 84 percent, then

A) each of the firms account for 21 percent of total sales. B) the four largest firms in the industry account for 16 percent of the total sales. C) the four largest firms in the industry account for 84 percent of the total sales. D) the remaining firms in the industry accounts for 84 percent of the total sales.

Economics

Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. At the end of the day, Jerry could have produced:

A. 14 dishes and 7 fences. B. 12 dishes and 6 fences. C. 10 dishes and 5 fences. D. 6 dishes and 4 fences.

Economics

Since a monopoly faces a downward-sloping demand curve,

a. then, as Adam Smith wrote, "the price of monopoly is upon every occasion the highest which can be got." b. price always exceeds average revenue. c. marginal revenue increases as output increases. d. the monopolist is a price maker.

Economics