Crowding out occurs when
a. increased taxes force higher levels of national saving.
b. deficit spending by the government forces private investment spending to contract.
c. local businesses cannot get government contracts because of the higher bids of large corporations.
d. foreign investors are willing to pay higher prices for U.S. bonds than American citizens will pay.
b
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
When there are more substitutes for a product, the ________ for the product is ________.
A. income elasticity; greater B. demand; less price elastic C. income elasticity; smaller D. demand; more price elastic
Tunitra consumes at a point on her budget line where her marginal rate of substitution exceeds the magnitude of the slope of her budget line. As Tunitra moves toward her consumer equilibrium point, she will move to a
A) lower budget line. B) higher budget line. C) lower indifference curve. D) higher indifference curve.
The price elasticity of demand for a good is relatively elastic if:
A. there are a large number of substitutes. B. the consumer has more time to make decisions about purchasing the good. C. the good is less of a necessity. D. All of these