Which of the following correctly describes crowding out?
a. The displacement of interest-sensitive private investment that occurs when increased government deficit spending drives up interest rates.
b. The potential for government spending to stimulate private investment in an otherwise sluggish economy.
c. The displacement of poverty-stricken people from low-income assistance programs when outlays are reduced to balance the federal budget.
d. The decline in market interest rates on account of increased fiscal spending on welfare programs.
a
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At the current level of output, the marginal social benefit of pizza exceeds the marginal social cost of pizza. Compared to the allocatively efficient quantity, we are producing too ________ pizza and too ________ of other goods
A) much; little B) much; much C) little; little D) little; much
In the short run, a firm in monopolistic competition produces where
A) MR = MC and economic profit is equal to zero. B) MR = MC. C) the given market price is equal to MC and economic profit is equal to zero. D) the given market price is equal to MC.
Describe the situation of the Japanese economy in the 1990s. What should the Japanese government have done differently, according to critics, to improve the economy?
What will be an ideal response?
If the demand for British pounds increases,
a. the equilibrium price of the pound will increase b. the equilibrium price of the pound will decrease c. the equilibrium price of the pound will not change d. the equilibrium price of the pound will change, but we need additional information to predict the direction of the change e. no one can predict what will happen