The tendency for higher government budget deficits to decrease investment is called the
A) crowding-out effect.
B) deficit effect.
C) Ricardo-Barro effect.
D) inflation effect.
E) wealth effect.
A
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The theory that monetary policy conducted on a discretionary, day-by-day basis leads to poor long-run outcomes is referred to as the
A) adverse selection problem. B) moral hazard problem. C) time-inconsistency problem. D) nominal-anchor problem.
What is the difference between nominal exchange rates and real exchange rates?
What will be an ideal response?
What is the “cost disease of personal services” phenomenon and why does it help explain why tuition rates keep going up so fast?
What will be an ideal response?
When two goods are perfect substitutes, the
a. indifference curve is a horizontal straight line. b. marginal rate of substitution is constant. c. indifference curve is a vertical straight line. d. Both a and b are correct.