The reduction in private borrowing that is caused by an increase in government borrowing is called:
A. the crowding out effect.
B. surplus investment.
C. the dissaving effect.
D. the savings effect.
A. the crowding out effect.
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If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then we know that
A) his indifference curves are convex. B) his indifference curves are L-shaped. C) his indifference curves are linear. D) his indifference curves are downward sloping.
Which of the following will tend to occur when the interest rate increases?
A) The demand for money curve shifts leftward. B) The demand for money curve shifts rightward. C) There is a rightward movement along the demand for money curve. D) There is a leftward movement along the demand for money curve.
In a product line extension
A) a constant price elasticity of demand is assumed. B) a firm introduces different products and lets buyers self-select themselves into different groups. C) is able to identify different markets at very low costs. D) demand is assumed to be elastic
The law of demand states that
a. demand increases when income increases b. quantity demand decreases when prices of related goods increase c. quantity demanded increases when price decreases d. demand is the willingness to buy products e. demand increases when population increases