Assume that if there was no crowding-out, an increase in government spending would increase GDP by $100 billion. On the other hand, if there had been full crowding-out, then GDP would have:
A. Increased by more than $100 billion
B. Increased by less than $100 billion
C. Increased by $100 billion
D. Not increased
D. Not increased
You might also like to view...
Which of the following will be observed if the Fed raises the reserve requirement?
a. The deposit expansion multiplier will fall b. The discount rate will decline c. The interest rate ceilings will fall d. Excess reserves will increase e. Money supply will increase
If the Fed paid a lower interest rate to banks on their reserves at the Fed, the money supply would tend to rise
a. True b. False Indicate whether the statement is true or false
Which of the following algebraic forms of a demand curve yields an isoelastic demand curve (i.e. a demand with constant elasticity)?
A. Q = a - bP + cI B. log(Q) = a - b log(P) + c log(I) C. Q = a - b log(P) + c log(I) D. log(Q) = bP + cI
Answer the following statement true (T) or false (F)
1) Demand is the active and supply the passive determinant of land rent. 2) Different rents on land reflect differences in the marginal revenue product of land. 3) The free-land era of U.S. history reflected a situation in which the quantity of land available at a zero price exceeded the quantity of land demanded. 4) Rent performs an incentive function, but no rationing function. 5) The interest rate is the price paid for the use of money.