The fallacy in the strict crowding-out argument comes from supposing that
a. the Federal Reserve always accommodates the U.S. Treasury in its financing of the deficit.
b. corporations always outbid small businesses for government contracts.
c. the economy's flow of saving is fixed.
d. investors will spend more when G increases.
c
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A green pasture has turned barren due to overgrazing. This happened because the pasture was ________
A) excludable and rival B) non-excludable and non-rival C) excludable but non-rival D) non-excludable but rival
The expenditure approach to measuring U.S. GDP equals _________
A. the sum of U.S. consumption expenditure and U.S. investment B. U.S. government expenditure minus taxes paid by Americans C. all expenditure on final goods and services produced in the United States in a given time period D. all expenditure by Americans on goods and services produced in the United States in a given time period
Contrary to many researchers' views, Hurst (1969) claims the government needed private investors to fund internal improvements
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Constant-dollar GDP can be converted into current-dollar GDP by multiplying the real GDP by the implicit price defoliators 2. The GDP does not include raw materials used up in the productive process. 3. The GDP makes no measurement of the deterioration of the natural environment. 4. National income is equivalent to total earnings in the form of wages, rent, interest, and profits. 5. Transfer payments are added to NI in the process of determining personal income.