The crowding-out effect describes how a government budget ________ ________ the real interest rate and thereby ________ equilibrium investment
A) surplus; raises; decreases
B) surplus; lowers; decreases
C) deficit; lowers; decreases
D) deficit; lowers; increases
E) deficit; raises; decreases
E
You might also like to view...
From the price-setter's point of view, the appropriate cost of a good is
A) the inventory cost. B) the marginal cost. C) the sunk cost. D) the wholesale cost.
The producer surplus on a unit of a good is the
A) difference between the marginal social benefit and the marginal social cost. B) number of dollars' worth of other goods and services forgone to produce this unit of the good. C) difference between the price of the good and the marginal cost of producing the good. D) difference between the total cost of the good and the marginal cost.
The recession that became the Great Depression began
A) two months prior to the stock market crash of 1929. B) with the stock market crash of 1929. C) one year after the stock market crash of 1929. D) with the banking panics of the early 1930s.
Hughes and Cain (2011) ask: Who suffered from the tariff in the 19th century? What was their answer?
(a) the government (b) producers of import-competing goods (c) consumers (d) workers in import-competing industries