When private expenditures decrease as a result of increased government spending, this is known as
A) the multiplier effect. B) the stabilizer effect.
C) government deficit spending. D) the crowding out effect.
D
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According to Robert Reich, Secretary of Labor in the Clinton administration,
A. the identity of American companies is clear, and laws should be written accordingly. B. foreign companies are clearly different from American companies. C. multinational companies have clear bases of operations, which form their identity. D. it is almost impossible to define the nationality of a multinational company. E. identifying the country of origin of a product is almost impossible but essential for proper regulation.
The government budget constraint says that ________
A) the difference between spending and revenues must equal the amount of new bond issues B) increases in spending must be matched by increases in revenue C) interest on government debt must be paid before tax revenues are spent on goods and services or disbursed as transfer payments D) state and local governments, in aggregate, cannot spend more than the federal government
The responsibility of paying for the Social Security benefits for currently retired individuals falls on
A) current and future workers. B) the retired people themselves. C) no one, since the government prints the money. D) only working people over 50 years of age.
A quota is
a. a tax placed on imports. b. a limit on the quantity of imports. c. a tax on exports to other countries. d. an excess of exports over imports.