The crowding-out effect of borrowing to finance the public debt:
A. decreases current spending for private investment.
B. increases the privately owned stock of real capital.
C. increases incentives to work and save.
D. decreases the economic burden on future generations.
Answer: A
You might also like to view...
The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15.Number ofCar WashesPer MonthTotal MonthlyBenefit fromCar Washes0$01$202$363$484$565$60How many times a month should you get your car washed?
A. 4 B. 3 C. 2 D. 1
Suppose a technology is described by the production function 
a. For a price taking producer who faces output price p and wage w, derive the first order condition and interpret it.
b. Without knowing more about the function f, is the condition you derived in (a) either necessary or sufficient for deriving the profit maximizing production plan? Explain.
c. Suppose 
. Derive the first order condition you illustrated in (a) and solve for 
.
d. For what values of 
is this first order condition necessary and sufficient for deriving a profit maximizing production plan? Explain.
What will be an ideal response?
Which of the following groups gain from international trade? i. producers of exported goods ii. domestic consumers of imported goods iii. workers in exporting firms
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Refer to Figure 6-7. Using the total revenue test to verify the price elasticity between points a and b on the demand curve, demand is
A) perfectly inelastic. B) perfectly elastic. C) elastic. D) unit-elastic.