The crowding-out effect suggests that
a. restrictive fiscal policy is an effective weapon against inflation.
b. expansionary fiscal policy will be a highly effective weapon for fighting a recessionary downturn
c. a budget surplus will cause the demand for loanable funds to decline, interest rates to rise, and aggregate demand to decrease.
d. budget deficits that lead to higher interest rates reduce private investment spending.
D
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Refer to Scenario 12.1. By what approximate percentage will Jennifer's income increase from age 25 to age 60?
A) 287 percent B) 400 percent C) 452 percent D) 561 percent
In October of 2014, the nominal interest rate earned on money market accounts was around 0.20 percent. This interest rate is a measure of which of the following?
A) the opportunity cost of holding money B) the inflation rate C) the demand for money D) the real interest rate
Which of the following assets is most liquid?
a. funds in a checking account b. a car c. ten acres of land d. a television
A subsidy equal to the marginal private benefit of a good can be used to make a market with a positive externality efficient
a. True b. False