Crowding-out occurs when
A. workers lose jobs as a result of anti-inflationary fiscal policies.
B. the federal government engages in bond sales to finance its budget deficit.
C. the Congress enacts budget cuts to balance the budget.
D. tax revenues rise more slowly than anticipated, resulting in the need to cut government spending.
B. the federal government engages in bond sales to finance its budget deficit.
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Total profit is maximized
A. where the difference between total revenue and total cost is greatest. B. at that output level where marginal revenue equals average cost. C. where total revenue is at a maximum. D. at the point where all variable costs are covered.
The rising price of oil has made it feasible to extract oil out of oily sand in Canada. Concerning the oil market, this is an example of
A) a higher price elasticity of supply in the long run. B) a higher price elasticity of supply in the short run. C) a higher price elasticity of demand in the short run. D) an inelastic long-run supply of oil.
Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if
a. the demand for American-made automobiles was highly elastic. b. the supply of foreign-produced automobiles was highly inelastic. c. American consumers considered foreign automobiles a poor substitute for American automobiles. d. the demand for American automobiles was relatively constant and highly inelastic.
What is the definition and purpose of the payroll tax?
What will be an ideal response?