Increases in government spending result in ________ in the short run, and permanent increases in government spending result in ________ in the long run
A) partial crowding out; partial crowding out
B) partial crowding out; complete crowding out
C) complete crowding out; complete crowding out
D) complete crowding out; partial crowding out
Answer: B
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Which of the following was not one of the reasons that a Big Push might be necessary?
a. finding foreign markets for export b. indivisibility of investments c. long gestation period of investments d. lack of local entrepreneurs e. none of the above were reasons for a Big Push
An initial deficiency in reserves of $20 and a required reserve ratio of .5 lead to a maximum demand deposit contraction of
A) $8. B) $40. C) $50. D) $80.
Assume you have four tickets to a U2 concert. You decide to sell each of them separately on an auction site such as eBay. Your auctions represent
A) price differentiation. B) perfect price discrimination amongst those who bid for your tickets. C) perfect price discrimination amongst all people who buy tickets for the concert. D) an illegal act, subject to state and federal prosecution.
According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply generates
A. an increase in aggregate supply since the supply of money is part of aggregate supply. B. increased spending on consumer goods and services directly, which causes an increase in aggregate demand. C. lower interest rates, which causes an increase in planned real investment spending and an increase in aggregate demand. D. an increase in nominal GDP and a change in the price level, but no change in real GDP.