In the presence of the crowding out effect, the purchase of Treasury bonds by the government will result in:
a. an increase in the interest rates.
b. a decrease in the price of bonds.
c. a decline in the private sector spending.
d. an increase in the private sector spending.
e. a decrease in the rate of inflation.
d
You might also like to view...
The trade balance for the United States equals
A. Exports plus imports. B. The current account balance minus the capital account balance. C. The difference between the dollar value of exports and the dollar value of imports. D. The difference between service exports and service imports.
At full employment, the ______ employment rate equals zero,
a. cyclical b. frictional c. structural d. overall
Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.
A) unlimited resources; economic systems B) human interactions; limited resources C) opportunity costs; choices D) social behavior; scarcity
In 1923, Germany experienced a very severe inflation. As prices in Germany rose, the demand in the foreign exchange market for U.S. dollars:
A. fell and the supply of them rose, decreasing their value. B. rose and the supply of them fell, increasing their value. C. fell and the supply of them also fell, increasing their value. D. rose and the supply of them also rose, decreasing their value.