When contractionary fiscal policy leads to
A) less private investment because of higher interest rates, the change in investment is called crowding in by economists.
B) more private investment because of lower interest rates, the change in investment is called crowding in by economists.
C) less private investment because of lower interest rates, the change in investment is called crowding in by economists.
D) less private investment because of higher interest rates, the change in investment is called crowding out by economists.
Ans: B) more private investment because of lower interest rates, the change in investment is called crowding in by economists.
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Agraria uses bushels of wheat to quote prices. In this case, bushels of wheat act as a
A. medium of exchange. B. store of value. C. commodity value. D. unit of account.
If Adam's Rib Joint took in $35,000 in revenue last week and had out-of-pocket expenses of $31,500:
a. it is clear that Adam made an economic profit of $3,500 b. Adam really didn't make any economic profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm. c. Adam clearly did not earn an economic profit. d. it is not clear whether Adam earned any economic profit last week because it depends on the magnitude of the implicit costs.
Assume that a rise in petroleum prices increases the cost of milk transportation from the dairies to the market. We can expect the long-run supply curve in this industry to shift downward
Indicate whether the statement is true or false
One cost that potentially could result from central banks targeting money growth is:
A. volatile interest rates. B. decreased independence. C. high inflation. D. a slowdown in financial innovation.