A higher government deficit that stimulates private investment in a weak economy is termed as crowding out
Indicate whether the statement is true or false
false
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For firms that sell one product in a perfectly competitive market, marginal revenue is:
A. the additional revenue gained from selling one more unit. B. equal to average revenue. C. equal to market price. D. All of these are true.
Which of the following statements is true?
a. The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making. b. In capitalism income is distributed on the basis of need. c. Adam Smith was the father of socialism. d. Most real-world economies are mixed economic systems. e. The "invisible hand" refers to government economic control.
All other things being equal, an increase in the supply of labor will lead to a fall in the wage
a. True b. False Indicate whether the statement is true or false
Suppose the government of Erbia imposes an income tax of 30 percent. If the base consumption of a consumer is $1,000 and the marginal propensity to consume is 0.8, then the total consumption of the consumer at an income of $5,000 will be _____
a. $2,600 b. $7,900 c. $5,900 d. $3,800