Crowding out may occur when fiscal policy involves
A. tax cuts.
B. increases in government purchases.
C. either increases in government purchases or tax cuts.
D. tax increases.
Answer: C
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Suppose that the CPI basket contains only 40 heads of cauliflower and 60 bunches of broccoli. If the price of cauliflower goes down by $1 per head and the price of broccoli goes up by $1 per bunch, then
A) the CPI decreases. B) the CPI does not change. C) the CPI increases. D) the CPI might increase or decrease depending how the quantities are affected by the price changes. E) There is not enough information to answer this question.
When asset prices rise above their fundamental economic values, a(n) ________ occurs
A) asset-price bubble B) liability war C) decline in lending D) decrease in moral hazard
Students can change the direction of the greater society through volunteering and other forms of involvement. They are also subject to the greater economy and environment. In the 1990s, college students, for the most part:
a. Enjoyed a strong economy with multiple job choices and a technology explosion. b. Flooded into social work and helping others professions c. Questioned authority and dealt with years of unrest and change d. Conformed and were very conservative, held traditional values
Which is more likely to stimulate aggregate demand in a timely manner?
What will be an ideal response?