When a government has a budget surplus, the surplus
A) helps finance investment.
B) crowds-out private saving.
C) must be subtracted from private saving to get total saving.
D) increases the world real interest rate.
A
You might also like to view...
If bad drivers can usually avoid being ticketed by the police, then insurance companies will
A) use one's driving record as a signal. B) use one's driving record as a screening device. C) not be able to use one's driving record as a screening device. D) request driving records directly from the police and not from the individual applicant.
When there is an excess demand for money, households will _____ interest-bearing bonds, causing interest rates to _____
Fill in the blank(s) with correct word
In an open economy, the source of the demand for loanable funds is
a. national saving b. national saving + net capital outflow c. investment + the government budget deficit d. investment + net capital outflow
Suppose a perfectly competitive firm and a monopolist are both charging $5 for their respective products. From this, one can infer that:
A. the competitive firm is charging too much, and the monopolist is charging too little. B. the marginal benefit from selling an additional unit of output is less than $5 for both firms. C. the marginal benefit from selling an additional unit of output is $5 for the competitive firm and less than $5 for the monopolist. D. the marginal benefit from selling an additional unit of output is $5 for both firms.