The crowding-out effect implies that a
a. budget surplus will be highly effective against inflation.
b. budget deficit is likely to stimulate aggregate demand and cause inflation.
c. budget deficit will increase real interest rates and, thereby, retard private spending.
d. budget surplus will retard aggregate demand and throw the economy into a downward spiral.
C
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A statement that "All children should receive free health care" is an example of what kind of statement?
A) a fair statement B) a natural experiment statement C) a normative statement D) a positive statement E) a statement on the margin
The ability of unions to successfully raise wage rates is dependent on the
a. higher elasticity of supply for labor b. lower elasticity of supply for marginal product c. higher elasticity of demand for the goods produced d. lower elasticity of demand for the goods produced e. higher elasticity of demand for labor
Recovery in the United States after the Great Recession can be characterized as:
a. U-shaped b. L-shaped c. V-shaped. d. W-shaped.
Bank deposit creation is limited by
A. reserve requirements. B. the interest rate. C. whether a bank is nationally or state chartered. D. whether a bank is in a large city or rural area.