The crowding-out effect indicates that an increase in a fiscal deficit financed by borrowing will increase interest rates and thereby crowd out some domestic investment spending
a. True
b. False
Indicate whether the statement is true or false
True
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Industrial production is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
If disposable income rises by $100 billion, we can expect that consumers will
A. increase their saving by $100 billion. B. increase their spending by $100 billion. C. increase their spending by more than $100 billion. D. increase their spending by less than $100 billion.
Refer to Table 9-3. If the required reserve ratio is 10%, what is the maximum amount of new loans that Alpha-Beta can create?
A) $25 million B) $40 million C) $60 million D) $75 million
Which of the following would shift the supply curve for smartphones to the right?
A) an increase in the price of a substitute in production B) an increase in consumer income (assuming that all smartphones are normal goods) C) a decrease in the number of firms that produce smartphones D) a decrease in the price of an input used to produce smartphones