According to the crowding-out effect, a budget deficit will lead to:
a. reduced investment spending and a reduction in long-term economic growth.
b. reduced investment spending and an increase in long-term economic growth.
c. increased investment spending and a reduction in long-term economic growth.
d. increased investment spending and an increase in long-term economic growth.
a
You might also like to view...
A time endowment is
A. the number of hours in a day. B. a gift of time that a person receives. C. the maximum number of hours in a year that a person can work. D. the largest amount of time that can be spent at leisure. E. all of these answer options are correct.
The World Trade Organization (WTO) is an international organization designed to:
A. monitor and enforce trade agreements, while also promoting free trade. B. monitor and enforce world banking policies, and lending between nations. C. provide a forum for all nations to have discussion on various international issues of concern. D. international governing body that is the final arbiter of all world trade.
Which statement is false?
A. A poor person who smokes pays a higher percentage of her income in cigarette excise tax than a rich person. B. The cigarette excise tax is a regressive tax. C. The cigarette excise tax is a direct tax. D. None of these statements are false.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.