The "crowding-out" effect refers to the fact that
A) fiscal policy cannot be used to shift the IS curve.
B) rising interest rates tend to accompany an expansionary fiscal policy.
C) there may be a liquidity trap.
D) All of these.
Ans: B) rising interest rates tend to accompany an expansionary fiscal policy.
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If wages do not fall when there is an excess supply of labor, then ________.
A. there is a speculative bubble in the labor market B. the economy cannot be in a slump C. Say's Law holds D. wages are "sticky downwards"
It is possible to purchase diplomas from diploma mills. The situation in which the degrees are more important than the knowledge they are supposed to represent is called:
A. accreditation. B. credentialism. C. cretinism. D. diplomacy.
Which of the following is a distinction between perfectly competitive and monopolistic competition?
A. Perfectly competitive firms must compete with rival sellers; monopolistically competitive firms do not confront rival sellers. B. Monopolistically competitive firms can raise their price without losing sales; perfectly competitive firms must lower their price in order to sell more of their product. C. Perfectly competitive firms confront a perfectly elastic demand curve; monopolistically competitive firms face a downward-sloping demand curve. D. Perfectly competitive firms may make either economic profits or losses in the short run, but monopolistically competitive firms always earn an economic profit.
Which of the statements best describes the difference between economic regulation and social regulation?
A. Economic regulation focuses on output and price; social regulation focuses on improving the quality of life. B. Social regulation targets industries like transportation, while economic regulation targets utilities. C. There are no significant differences between economic and social regulation, social regulation is a more modern way of regulating an economy. D. Social regulation focuses on output and price; economic regulation focuses on quality of life issues.