Based on the graph showing the crowding-out effect, how does the crowding-out effect influence the fiscal policy effect?
a. It decreases it by the difference between AD2 and AD3.
b. It increases it by the difference between AD1 and AD3.
c. It completely negates the fiscal policy effect.
d. It doubles the fiscal policy effect.
a. It decreases it by the difference between AD2 and AD3.
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Which of the following is NOT an asset of the Federal Reserve System?
A) mortgage-backed securities B) reserves of depository institutions C) U.S. government securities D) None of the above are correct because they are all assets of the Federal Reserve.
Most economists will argue that the minimum wage causes unemployment. Even politicians will recognize this when pressed
However, typically liberals will tout the benefits of the minimum wage while conservatives will decry the disruption that it causes in the labor market. Which economic objective seems to be more important for liberals and which is more important to conservatives if this general observation is correct? Which side is right?
If the fractional reserve system did not exist,
a. the banking system could not create money. b. there would be no effect on the ability of the banking system to create money. c. banks would loan out its required reserves. d. banks would be highly susceptible to bank runs. e. the banking system would realize the money multiplier.
A firm's marginal cost curve above the minimum of the average variable cost curve is also:
A. the firm's demand for production curve. B. the firm's producer surplus curve. C. the firm's short-run supply curve. D. the market supply curve.