Crowding out refers to the effect that deficits have on private investment spending
a. True
b. False
Indicate whether the statement is true or false
True
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The above figure shows the market for pizza. The market is in equilibrium when people's incomes decrease. If pizza is a normal good, then which point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
An English auction consists of ________
A) an auctioneer and several bidders B) one auctioneer and one bidder C) few auctioneers and several bidders D) several auctioneers and one bidder
Does a person who works in a brothel sell productive services?
A) Yes, if the service is demanded. B) Yes, but only in states where brothels are legal. C) No, because the service is immoral. D) No, because the service does not help the overall economy.
If the required reserve ratio is 10% and the Fed purchases $20 million worth of securities, what is the simple deposit multiplier and what happens to the amount of deposits in the banking system? Assume that banks do not hold excess reserves and the
public does not change its currency holdings.