Crowding out would most likely occur when:
A. the federal government engages in bond sales to finance its budget deficit.
B. tax receipts rise more slowly than anticipated, resulting in the need to cut government spending.
C. workers lose jobs as a result of anti-inflationary fiscal policies.
D. Congress enacts budget cuts to balance the budget.
Answer: A
You might also like to view...
The Fed ________ intervene in the foreign exchange market by supplying dollars and the Fed ________ intervene in the foreign exchange market by demanding dollars
A) can; can B) cannot; can C) can; cannot D) cannot; cannot
A nation has a positive net capital outflow. Which of the following is correct?
a. Purchases of foreign assets by domestic residents exceed purchases of domestic assets by foreigners b. It has positive net exports. c. Its savings exceeds its domestic investment. d. All of the above are correct.
Office workers and word processing programs are complements if:
A. a decrease in the wage paid to office workers leads to an increase in the demand for word processing programs. B. a decrease in the wage paid to office workers leads to a leftward shift in the demand for word processing programs. C. they perform similar functions. D. an increase in the price of word processing programs leads to an increase in the demand for office workers.
The standard discussion of monetary policy is based on the assumption that:
A. short-term rates will fall when the Fed pushes up long-term interest rates. B. short-term rates will rise when the Fed pushes up long-term interest rates. C. long-term rates will fall when the Fed pushes up short-term interest rates. D. long-term rates will rise when the Fed pushes up short-term interest rates.