Crowding out is most likely to occur with which of the following changes?
A) Decrease in government spending
B) Increase in budget surplus
C) Increase in budget deficit
D) Decrease in the real interest rate
E) Decrease in trade deficit
Ans: C) Increase in budget deficit
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When people expect that the future exchange rate will be lower, they ________ the supply of dollars and the current exchange rate ________
A) decrease; rises B) decrease; falls C) increase; falls D) increase; rises E) do not change; rises
In the prisoner's dilemma game:
A. if players can communicate in advance, they will always cooperate. B. if players can communicate in advance, they may still not cooperate. C. will always choose to cooperate. D. will only cooperate if they are trustworthy.
A market in which finished goods and services are exchanged is a:
a) Product market. b) Financial market. c) Intermediate-goods market. d) Factor market.
Which question is an example of a macroeconomic question?
A. What is the level of industrial concentration in the U.S. automobile industry? B. What economic incentives can be used to reduce the cost of health care in the nation? C. What policies would be recommended for stimulating national economic growth? D. What market conditions are expected for milk in the nation this year?