The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively
A. insensitive to interest rates and to GDP.
B. insensitive to interest rates but sensitive to GDP.
C. sensitive to interest rates and to GDP.
D. sensitive to interest rates and insensitive to GDP.
Answer: D
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Explain how it might be possible to discuss costs of production of a good or service without using monetary values
What will be an ideal response?
For a firm facing a downward sloping demand curve, marginal revenue
A) is at a minimum at the midpoint of the demand curve. B) is greater at higher prices than at lower prices. C) increases each time prices are lowered. D) falls each time prices are raised.
Which of the following items does not provide a store of value?
a. Currency. b. Checkable deposits. c. Credit cards. d. All of these are correct.
The income of U.S. citizens working abroad counts in U.S. GNP.
Answer the following statement true (T) or false (F)