Crowding out occurs when the government
a. reduces the level of the national debt, forcing up interest rates
b. balances the budget, increasing the value of government bonds and thereby causing consumption to fall
c. borrows money to finance the national debt, forcing up interest rates, causing private investment to fall
d. borrows money to finance the national debt, causing interest rates to fall causing private investment to fall
e. borrows money to finance the national debt, forcing up interest rates, causing consumption to fall
C
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The measurement of industry concentration which calculates the percentage of all sales contributed by a specific number of leading firms is called the
A) Herfindahl-Hirschman Index. B) concentration ratio. C) producer price index. D) P/E ratio.
The use of government expenditures and taxes to influence the level of economic activity is called fiscal policy.
a. true b. false
A firm's long-run average cost curve is
A) the locus of points representing the minimum unit cost of producing any given rate of output when all inputs may be adjusted. B) the locus of points made up of the minimum point on each short-run average total cost curve when only one input may be adjusted. C) the envelope of the firm's variable cost curves. D) identical to the lowest short-run average cost curve the firm has.
The real rate of interest is
A. found by taking the nominal rate of interest and adding the actual rate of inflation. B. equal to the nominal rate of interest plus the anticipated rate of inflation. C. found by taking the nominal rate of interest and dividing it by the actual rate of inflation. D. equal to the nominal rate of interest less the anticipated rate of inflation.