As discussed in the Case in Point on the degree of crowding out of Canadian private investment as a result of government expenditures from 1961-2000, Professor Baotai Wang concluded that
A) all types of government spending—spending on health and education, on infrastructure and capital, on defense, on debt services, and on government and social services—lead to crowding out.
B) government expenditures that increased human capital, such as spending on health and education, are more likely to lead to crowding out than other types of government expenditures.
C) crowding out depends on the nature of spending done by the government.
D) government expenditures, on infrastructure and capital are more likely to lead to crowding in because they expand a nation's capital stock
Ans: C) crowding out depends on the nature of spending done by the government.
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How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.60 dollars per British pound?
A) 38.125 British pounds B) 28.125 British pounds C) 48.125 British pounds D) 58.125 British pounds E) 18.125 British pounds
A government-imposed restriction on the quantity of a specific good that may be imported to and sold in the United States is called a
A) tariff system. B) quota system. C) reverse-trade system. D) union trade system.
In a competitive market where the elasticity of the market demand curve is -2, the elasticity of the supply curve is 1, and an individual firm faces a residual demand curve with an elasticity of -98. What happens to the individual firm's residual demand curve when the number of firms serving this market declines?
A) It becomes less elastic. B) It becomes more elastic. C) It does not change. D) It cannot be determined.
Taxes can be used to internalize negative externalities.
Answer the following statement true (T) or false (F)