One potential implication of the use of fiscal policy is crowding out
What will be an ideal response?
Basically, crowding out refers to the idea that since the government steps in to affect the economy, there may be a reduction in the availability of funds for private investment; this investment gets crowded out by the government use of funds
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________ quantity theory of money suggests that the demand for money is purely a function of income, and interest rates have no effect on the demand for money
A) Keynes's B) Fisher's C) Friedman's D) Tobin's
The short-run supply curve of a perfectly competitive firm is the
a. upward-sloping portion of its average total cost curve b. upward-sloping portion of its average variable cost curve c. average fixed cost curve at all levels of output d. marginal cost curve, which lies above the average variable cost curve e. downward-sloping portion of its marginal cost curve
If finding the last stamp to complete your collection makes you even happier than finding the first, then your
a. marginal utility is zero b. marginal utility is negative c. total utility is decreasing d. total utility is constant e. marginal utility is not diminishing
If a government spends $20 billion on new bridges that have an expected life of 20 years, the expenditures would:
a. Increase government spending and government expenses by the full $20 billion even though a business would expense them over the 20-year period. b. Not change government spending and therefore would not change the government deficit because they are capital expenditures. c. Increase total government spending by the full amount (i.e., $20 billion), but only $1 billion of it would be considered part of the budget deficit because the $20 billion is amortized over the 20 years. d. Initially increase the budget deficit by an amount equal to $20 billion, but only $1 billion of it would be considered part of the government spending because the $20 billion is amortized over the 20 years.