Government debt "crowds out" private investment because
A) the government and private firms compete in the same market for savings.
B) private firms stop borrowing money when the government enters the market.
C) the government's increased demand for loans decreases interest rates.
D) the government can order the public to buy bonds.
A
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When the price level rises, the long-run aggregate supply curve ________
A) shifts rightward B) does not shift C) slopes upward D) shifts leftward
By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology
However, the costs of producing electric autos may increase because of higher costs for inputs (e.g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i.e., learning by doing). What is the expected impact of these changes on the equilibrium price and quantity for electric autos? A) Unambiguously higher equilibrium price and quantity B) Unambiguously higher price, and equilibrium quantity may be higher or lower C) Unambiguously higher quantity, and equilibrium price may be higher or lower D) We cannot form any unambiguous expectations for either price or quantity
The firm's short-run supply curve shows the relationship between the price of a good and the:
A. quantity demanded of that good. B. quantity supplied of that good. C. willingness of consumers to purchase the good. D. firm's capacity output.
In the short run, a firm should shut down when
A) P < AVC. B) P > MC. C) MR > MC. D) MR = ATC.