According to the crowding-out view, budget deficits will:
a. reduce interest rates.
b. increase interest rates and retard private investment.
c. reduce the investments of foreigners in the United States.
d. increase the capital stock available to future generations.
b
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The short-run effect of an increase in the supply of money is
A) an increase in the price level, a decrease in real Gross Domestic Product (GDP), but an increase in nominal national income. B) an increase in the price level but not in real Gross Domestic Product (GDP). C) an increase in both real Gross Domestic Product (GDP) and the price level. D) an increase in real Gross Domestic Product (GDP) but not in the price level.
Refer to Table 2-11. What is South Korea's opportunity cost of producing one digital camera?
A) 0.05 pounds of wheat B) 20 pounds of wheat C) 25 pounds of wheat D) 60 pounds of wheat
If you compared the short-run demand and long-run demand for education at your college, you would almost certainly find that
a. the long-run demand curve was steeper than the short-run demand curve. b. a tuition increase would reduce enrollment more in the long run than in the short run. c. a reduction in tuition would increase enrollment in the short run but not in the long run. d. the short-run and long-run demand curves were identical.
If a country experiences capital flight, which of the following curves shift right?
a. only the demand for loanable funds. b. only the supply of dollars in the market for foreign-currency exchange. c. only the net capital outflow curve and the supply of dollars in the market for foreign currency exchange. d. the demand for loanable funds, the net capital outflow curve, and the supply of dollars in the market for foreign currency exchange.