Crowding out will be less likely to occur if:
A. business investment depends on interest rates.
B. interest rates rise when the budget deficit increases.
C. interest rates fall when the budget deficit decreases.
D. business investment does not depend on interest rates.
Answer: D
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According to your text, the "market economy" can best be understood as
A) an institution created by British merchants around the time of Smith's Wealth of Nations. B) an extremely complex institution that emerged out of individuals specializing and trading among each other. C) an institution unique to America. D) an institution that could not exist in the absence of regulation.
Suppose you purchase a new home for $75,000, making a down payment of 20% and taking out a mortgage on the balance
What is the return on your investment in your home if one year later the price of the home increases by 5%? What if the price of the home decreases by 5%?
Which of the following cases represent the smallest increase in the real national debt?
a. The price level increases by 200 percent and the nominal debt increases by 200 percent. b. The price level increases by 200 percent and the nominal debt increases by 100 percent. c. The price level increases by 200 percent and the nominal debt increases by 500 percent. d. The price level increases by 100 percent and the nominal debt increases by 300 percent. e. None of the above
In the short run in perfect competition,
a. each firm can sell whatever quantity it wishes to sell at the market price b. the market demand curve cannot shift c. new firms will enter the market if existing firms are earning economic profits d. new firms will enter the market if existing firms are earning normal profits e. existing firms will exit the market if they are suffering losses