Assume that fewer businesses offer new bonds to raise investment funds when government borrowing increases interest rates. This would be an example of:
a. Ricardian equivalence.
b. overestimating the tax multiplier.
c. crowding out.
d. increased consumption.
e. the balanced-budget multiplier.
c
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For the following questions assume the following facts:
(1 ) Balance of Payments = 0 prior to the transactions. (2 ) Person A (who lives in the United States) purchases an airplane from British Airways for $150,000. (3 ) Person A pays with a check from his account at First Union Bank in the United States. (4 ) British airways, since it will need dollars in 1 month, deposits the check at the Bank of England. (5 ) Bank of England deposits the $150,000 at Commonwealth bank, which is located in the United States. Due to the transactions above, what are the effects on the reserve at the Fed? A) Fact 2 is a decrease of $150,000, fact 5 is a decrease of $150,000, a net effect of -$300,000. B) Fact 3 is a decrease of $150,000, fact 5 is an increase of $150,000, a net effect of 0. C) Fact 3 is an increase of $150,000, fact 5 is a decrease of $150,000, a net effect of 0. D) Both fact 3 and fact 5 result in increases of $150,000, a net effect of +$300,000. E) Both fact 3 and fact 5 result in decrease of $150,000, a net effect of -$300,000.
In a typical month of expansion, the U.S. economy sheds about 3.8 million jobs but creates only 2.8 million new ones
Indicate whether the statement is true or false
Sheena lost her job as a sales manager when she quit to move to Texas. She is currently submitting applications and doing job interviews. What type of unemployment is this?
a. structural b. cyclical c. she is not unemployed d. frictional
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.