The crowding-out effect refers to:
A. higher interest rates and reduced private spending that results from financing federal budget deficits.
B. higher future taxes accompanying budget deficits to reduce private consumption.
C. the inflation rate to rise when the unemployment rate is low.
D. increases in private savings to reduce interest rates and, thereby, crowd-out government
Answer: A
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Which statement is most correct about the types of deposits a commercial bank can accept?
A) A commercial bank does not accept deposits but sells shares. B) A commercial bank accepts checking, savings and time deposits. C) A commercial bank accepts savings and time deposits, but not checking deposits. D) A commercial bank can only accept checking deposits from commercial enterprises. E) A commercial bank can accept loan deposits, reserve deposits, and checkable deposits.
When marginal revenue equals price for all levels of output, the firm is operating in a perfectly competitive market
a. True b. False
In terms of desirable features of a monetary policy instrument, explain why the size of the staff at the Fed is not a good policy instrument. Be sure to address which feature(s) it fits and which one(s) it doesn't.
What will be an ideal response?
At the equilibrium real interest rate in the open-economy macroeconomic model, the equilibrium quantity of loanable funds equals
a. net capital outflow. b. domestic investment. c. foreign currency supplied. d. national saving.