The crowding out of private spending by government spending will be greater the
A) less sensitive consumption, investment, and net exports are to changes in the price level.
B) less sensitive consumption, investment, and net exports are to changes in interest rates.
C) more sensitive consumption, investment, and net exports are to changes in interest rates.
D) more sensitive consumption, investment, and net exports are to changes in the price level.
C
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When wealth ________, saving supply ________, and the supply of loanable funds curve shifts ________
A) increases; increases; rightward B) decreases; decreases; leftward C) increases; increases; leftward D) increases; decreases; leftward E) decreases; decreases; rightward
In the United States, the strategy of monetary policy
a. has not changed even as the economic environment has varied. b. has been to target interest rates. c. has been to target the money supply. d. None of the above
In a perfectly competitive market, the number of sellers must be large enough that
a. none of them ever earns positive economic profits. b. none of them can significantly alter the price of the product. c. they each end up selling a slightly different product. d. it is easy for a particular firm to leave the market.
The aggregate supply curve slopes upward because firms
a. seek to maximize profits and output. b. normally can purchase inputs at fixed prices. c. employ technology, which is always fixed. d. purchase inputs whose prices rise as output rises.