When the supply of real loanable funds is upward-sloping and the demand for real loanable funds rises, complete crowding-out:
a. Occurs because private demand falls by the same amount that government borrowing rises.
b. Does not occur because taxes rise with the increase in real GDP.
c. Does not occur because new funds are supplied to the Real Loanable Funds Market as the real, risk-free interest rate rises.
d. Occurs because private borrowers will increase the amount their loans as the real risk-free interest rate rises.
.C
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The _____ is the most important automatic stabilizer
Fill in the blank(s) with correct word
If a demand curve shifts rightward, this means
A) quantity demanded is greater only at one particular price. B) quantity demanded is greater at every price. C) buyers are willing and able to purchase more of the good at every price. D) buyers are willing and able to purchase less of the good at every price. E) b and c
Katz, Goborg, and Rimmet are oligopolists in the tractor industry. They face intense pressure from foreign tractor imports. Which of the following actions could be considered collusive?
a. Goborg and Rimmet collaborate on a pricing strategy to boost their sales. b. Katz hires lobbyists to convince the government to raise tariffs on imported tractors. c. Rimmet and Goborg each lower their prices after Katz lowers its prices. d. Goborg deliberately lowers its prices to try to steal customers from Rimmet and Katz.
When a perfectly competitive firm weighs price and marginal cost and no externalities exist, it is weighing the ________ benefits to society of additional production against the ________ costs to society of that production.
A. marginal; marginal B. full; full C. marginal; full D. full; marginal