Crowding in occurs when government spending, by raising Real GDP, induces increases in private investment spending.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Federal subsidies to higher education have the effect of
a. increasing the demand for higher education b. increasing the supply of higher education c. decreasing the demand for higher education d. decreasing the supply of higher education
Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment
a. True b. False Indicate whether the statement is true or false
Is a congested nontoll road excludable? Is it rival in consumption? How do we classify a congested nontoll road in terms of the four types of goods?
Sally quit her job as an auto mechanic earning $50,000 per year to start her own business. To save money she operates her business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year. She
also invested her $20,000 savings (which earned a market interest rate of 5% per year) in her business. You are given the following information about the first year of her operations. Total revenue $120,000 Cost of labor 40,000 Cost of materials 15,000 Equipment rental 5,000 a. Calculate her economic costs for the first year. b. Calculate her accounting costs for the first year. c. Calculate her implicit costs for the first year. d. Sally tells you that she would really like to move to a location closer to town but she decided against it because "right now I don't pay any rent and it will cost me $10,000 a year to rent near town." Do you agree with her reasoning?