Macland is going through a recession, and its government is borrowing 1 billion dollars to increase government spending and stimulate the economy. This has increased the interest rate, decreasing the number of private investors. What is this situation in investments called?

a. crowding out
b. expansionary fiscal policy
c. liquidity trap
d. interest rate appreciation


a. crowding out

Economics

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Keynesian economists generally agree that unemployment is more costly than inflation.

Answer the following statement true (T) or false (F)

Economics

Jake is an executive of a major corporation. Boris is a baker. Jake earns a salary ten times as large as the salary Boris earns, and Jake has a much larger oven for baking break. Jake can make a loaf of bread that tastes better than Boris's bread but Boris can bake faster.

A. Jake has an absolute but not comparative advantage over Boris in making bread. B. Jake had a comparative but not absolute advantage over Boris in making bread. C. Jake has an absolute and comparative advantage over Boris in making bread. D. Jake does not have an absolute or comparative advantage over Boris in making bread.

Economics

Most economists _________ tariffs and _________ quotas.

A. favor; favor B. oppose; oppose C. favor; oppose D. oppose; favor

Economics

In the industrial period of U.S. history, the manufacturing goods consumed by U.S. households were subject to

(a) high taxes. (b) Engel's Law. (c) income effects. (d) none of the above.

Economics