When private firms reduce investment because of the increase in interest rates brought about by government borrowing it is termed:
A. rent seeking.
B. logrolling.
C. crowding out.
D. monetary policy.
Answer: C
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As a store of value, money
A) does not earn interest. B) cannot be a durable asset. C) must be currency. D) is a way of saving for future purchases.
Under the Global Legal Settlement of 2002, the provision that requires investment banking firms to sever the link between underwriting and research is an example of
A) regulate for transparency. B) supervisory oversight. C) separation of functions. D) socialization of information production.
The general perception in the early 1980s was the S&Ls were not in serious trouble, partly because S&Ls were insured by the
A) Securities and Exchange Commission (SEC). B) U.S. Treasury. C) Federal Deposit Insurance Corporation. D) Federal Savings and Loan Insurance Corporation (FSLIC).
Which of the following is an extreme form of risk associated with investing in a foreign country?
a. Credit risk b. Labor unrest c. Expropriation d. Immigration rules