What method of financing government spending leads to the least crowding-out?

A) Money creation
B) Taxation
C) Selling bonds to the public
D) Selling government assets, like national parks


A

Economics

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According to the Taylor rule, if inflation equals 4 percent and there is a recessionary gap equal to 4 percent of potential output, the Fed will set a real interest rate of ________ percent and a nominal interest rate of ________ percent.

A. 1; 4 B. 2; 4 C. 1; 5 D. 4; 4

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If either the supply or the demand curve in a goods market is very elastic, a per-unit tax will end up not raising very much revenue.

Answer the following statement true (T) or false (F)

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Statistical Murder

What will be an ideal response?

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In contestable markets, large oligopolistic firms end up behaving like

A. monopolistically competitive firms. B. a cartel. C. a monopoly. D. perfectly competitive firms.

Economics