The crowding-out effect stresses that increased government borrowing to cover a budget deficit will cause
a. a higher interest rate and depreciation of the U.S. dollar.
b. a higher interest rate and appreciation of the U.S. dollar.
c. a lower interest rate and depreciation of the U.S. dollar.
d. a lower interest rate and appreciation of the U.S. dollar.
e. no change in the interest rate and depreciation of the U.S. dollar.
B
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Use the information provided in Exhibit 11-4. If a person’s taxable income is $110,000, how much does he pay in taxes?
A) $21,750 B) $33,000 C) $24,750 D) $48,000
Property promised to the lender as compensation if the borrower defaults is called
A) collateral. B) deductibles. C) restrictive covenants. D) contingencies.
Automatic stabilizers create ________ during recessions from increased government spending on welfare and unemployment insurance, and reduced tax revenues, and create _________ during peak growth periods of the economy from reduced government welfare spending and increased tax revenues
a. fiscal stimulus, fiscal contraction b. fiscal stimulus, fiscal stimulus c. fiscal contraction, fiscal stimulus d. fiscal contraction, fiscal contraction
Suppose the supply of Malaysian rubber increases. If U.S. producers purchase this rubber as an input, in the United States, this would cause a
A) rightward shift of the AD curve. B) leftward shift of the AD curve. C) rightward shift of the SRAS curve. D) leftward shift of the SRAS curve.