Crowding out is most likely to occur when the federal government
A. Runs a deficit and raises taxes to generate more revenue.
B. Runs a surplus and pays off part of the debt.
C. Has a balanced budget and refinances a portion of the debt that matures.
D. Runs a deficit and sells bonds to make up the difference.
Answer: D
You might also like to view...
Developing countries are usually unwilling to negotiate over labor standards because
A) the WTO always tends to rule in favor of industrialized nations. B) they fear that industrialized nations are trying to undermine their comparative advantage—production of agriculture and textiles/apparel—and close the markets of high-income countries in these areas. C) they fear that they may be unable to compete without some protection of their industries. D) they don't have a comparative advantage in any good at all. E) organized labor would not allow them to negotiate with other countries.
The shortest term security sold by the US is the:
A. Treasury bonds. B. Treasury notes. C. certificate of deposit. D. Treasury bills.
The framers of the Constitution sought to limit the economic role of the government as evidenced by
A) all of the above. B) the enumeration of the permissible powers of the federal government in Article I, Section 8. C) the 5th Amendment's limitation on the government's power to take private property. D) the 10th Amendment's allocation of all non-enumerated powers to the states and the people.
For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A. a normal rate of return must be paid to the owner. B. the industry will be a closed shop. C. the wage rate offered the newest employee must be paid to all workers. D. there is not good factor substitution in a monopsony.