The crowding-in effect results from the ______________ on aggregate demand.
Fill in the blank(s) with the appropriate word(s).
stimulating effect of deficits
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What effect has the presence of federal deposit insurance had on the banking industry?
A) Banks have made it more difficult for customers to qualify for loans. B) Depositors have become more vigilant in monitoring the decisions made by managers of their banks. C) Banks have made riskier loans. D) Banks now hold more excess reserves.
A company facing the problem of moral hazard decided to lay off some workers during a recession, instead of lowering wages. What is the possible reason behind such a decision?
What will be an ideal response?
In the short run, as output rises above potential ________
A) inflation will fall from its current level which explains the upward-sloping nature of the Phillips curve B) inflation will rise from its current level which explains the upward-sloping nature of the aggregate supply curve C) unemployment will rise above the natural rate which explains the upward-sloping nature of both the Phillips curve and the AS curve D) all of the above E) none of the above
Between 1860 and 1910, the _______________ industry showed the greatest percentage increase in value added per worker
a. cotton textile b. men's clothing c. lumber d. machinery