Crowding out refers to the effect that:
A. C and I are indirectly affected by changes in G.
B. C is directly affected by changes in G.
C. C and I are directly affected by changes in G.
D. C and I are completely unrelated to changes in G.
A. C and I are indirectly affected by changes in G.
You might also like to view...
A firm's minimum efficient scale is the largest quantity of output at which long-run average cost reaches its highest level
Indicate whether the statement is true or false
If the marginal social cost of producing a product exceeds the marginal social benefit, producers will produce less of it
a. True b. False
An advantage of public works over transfer payments as a means of reducing unemployment is that
a. public works provide more direct aid to those suffering most from unemployment. b. transfer payments are unlikely to decrease unintended excess inventories of consumer goods. c. public works require using a large amount of capital goods and producing a large amount of supplies. d. All of these.
____ refer to goods and services that are produced domestically and sold in another country
a. Imports b. Exports c. Intermediary goods d. Merit goods