The crowding-out effect of an expansionary fiscal policy is the result of government borrowing in the market which
A. increases interest rates and net investment spending in the economy.
B. increases interest rates and decreases net investment spending.
C. decreases interest rates and increases net investment spending.
D. decreases interest rates and net investment spending.
B. increases interest rates and decreases net investment spending.
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Which of the following statements is not true?
A. Taxes often create inefficiency but can increase equity. B. Tax policy is often a balance between equity and efficiency. C. Some taxes lead to greater efficiency. D. Taxes are about efficiency not equity.
If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________, and the price received by Brazilian producers of ethanol ________
A) does not change; does not change B) rises; rises C) rises; falls D) falls; rises E) falls; falls
A rise in the price of an input can be expected to lead to a rise in its marginal physical product.
Answer the following statement true (T) or false (F)
The percentage of world GDP represented by the G7 is ________ and the percentage of world GDP represented by the BRIC economies is ________
A) falling, rising B) falling, falling C) rising, falling D) rising, rising