Ceteris paribus, which of the following is true about the concept of crowding out?
A. It increases the private sector's ability to raise the level of output.
B. It occurs when spending increases are matched with tax increases.
C. It does not affect the private sector's ability to raise the level of output.
D. It reduces the private sector's ability to raise the level of output.
Answer: D
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Normal goods are those for which demand decreases as
A) the price of a complement falls. B) the price of a substitute falls. C) income decreases. D) the good's own price rises.
The burden of a site value tax will be borne entirely by the site owner _____
a. because the demand for land is elastic b. when the site owner is forced to remit the tax c. because the supply of land is completely inelastic d. when the supply of land is unitary elastic
A reduction in G or an increase in T would lead to lower real interest rates in the United States, a depreciating dollar, and, eventually, a smaller trade deficit..
Answer the following statement true (T) or false (F)
When the U.S. economy reached full employment in 2007, the cyclically-adjusted deficit that year was -1.3% of GDP. From this information, we know that the:
A. Actual budget deficit must have been very close to 0% of GDP B. Government implemented a contractionary fiscal policy that year C. Actual budget deficit must have been very close to -1.3% of GDP D. Government implemented a more expansionary fiscal policy from 2006 to 2007