Advocates of the crowding-out effect maintain that the large budget deficits during the recession of 2008-2009
a. stimulated output and employment, leading to a quicker recovery.
b. will lead to a slower recovery than would have been the case if government borrowing had been more restrained.
c. led to lower interest rates, stimulating private investment and consumption.
d. will lead to lower future taxes and more private spending as the economy recovers.
B
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If the market for beef cattle was initially in equilibrium, an increase in the price of the feed grains used to fatten cattle would cause
a. the demand for beef cattle to increase, driving the price of beef upward b. the supply of beef cattle to decline, driving the price of beef upward in the long run c. the supply of beef to increase, placing downward pressure on the price of beef in the long run d. both supply and demand to fall, leaving the price of beef virtually unchanged e. the supply of beef to increase, driving the price of beef down and increasing demand
Microeconomics is the branch of economics in which you study inflation and unemployment in the economy
a. True b. False Indicate whether the statement is true or false
An increase in subsidies and other government spending during a recession is likely to result in
a. an increase in rent-seeking activity. b. an increase in productive projects and a reduction in unproductive projects. c. a decrease in the level of future taxes. d. greater reliance on profits and losses in the allocation of resources.
Suppose that Industry X has two firms with equal market shares, and Industry Y has three firms with 65 percent, 30 percent, and 5 percent market shares, respectively. Which of the following is TRUE?
A) The HHI for Industry X is 50 higher than the HHI for Industry Y. B) The HHI for Industry X is 150 lower than the HHI for Industry Y. C) The HHI for Industry X is 100 higher than the HHI for Industry Y. D) The HHI is the same between Industry X and Industry Y.