Crowding-out
A. refers to the idea that increases in government purchases inevitably cause reductions in some form of private consumption or investment.
B. only occurs at full employment levels of National Output.
C. is translated into inflation during periods of slack employment.
D. does not include loss of leisure on the part of workers employed as a result of government spending.
A. refers to the idea that increases in government purchases inevitably cause reductions in some form of private consumption or investment.
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The option to buy a company's stock at some future time at current prices is often given to CEOs
a. as an incentive to take actions that will raise the share price. b. because CEOs are often friends of those who hire them. c. as a means of discouraging the CEO from taking any risky actions. d. because this has become the custom of the business culture.
When comparing a $100 billion increase in government expenditure to a $100 billion decrease in tax revenue, the effect of the increase in government expenditure on aggregate demand is
A) greater than the effect of the tax decrease. B) equal to the effect of the tax decrease. C) less than the effect of the tax decrease. D) positive whereas the effect of the tax decrease is negative. E) negative whereas the effect of the tax decrease is positive.
Refer to the scenario above. This is an example of ________
A) a mixed strategy game B) an ultimatum game C) a symmetric game D) a prisoners' dilemma game
The interest rate at which international banks loan to each other is called
A) LIBOR B) federal funds rate C) prime rate D) international bank lending rate