Crowding out occurs when deficit spending by the government forces private investment spending to contract.
Answer the following statement true (T) or false (F)
True
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The data in the above table demonstrates that gains from trade can be captured if
A) the United States produced both goods. B) the United States produced steel in exchange for concrete produced in France. C) the United States produced concrete in exchange for steel produced in France. D) each country became self-sufficient, produced both goods for itself, and did not engage in trade.
Perfectly competitive markets maximize the sum of producer and consumer surplus
a. True b. False
Countercyclical fiscal policy has a serious problem with
a. overshooting the desired impact by a factor of 10. b. the irreversibility of actions. c. the tendency of the Federal Reserve to immediately counter Congressional action. d. the courts as it has been held to be unconstitutional. e. overshooting the desired impact by a factor of 3.
If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income
a. 5 b. 10 c. 15 d. 20