The "crowding-in" effect suggests that
A. government spending is increasing at the expense of private investment.
B. private investment is encouraged by economic expansion.
C. private investment is decreasing because of government spending.
D. consumption is increasing at the expense of investment.
B. private investment is encouraged by economic expansion.
You might also like to view...
If the economy were experiencing a recession, which of the following would Keynes be in favor of?
A. Households should save less and consume more goods and services. B. The government should increase taxes to balance its budget during a recession. C. Businesses should decrease spending on new equipment until the economy improves. D. The government should discourage companies from exporting goods to foreign countries while people at home are unable to buy basic necessities.
Assume that production from an electric utility caused acid rain. If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would
A) internalize the externality. B) externalize the externality. C) result in a marginal social benefit greater than the marginal cost of the electricity. D) be an example of supply-side economic policy.
Use the following table to answer the question below. Units ConsumedTotal UtilityMarginal Utility00-1W20235X3Y10440ZThe value for Z is
A. -10. B. -5. C. 5. D. zero.
Sellers turn so frequently to government in efforts to protect themselves from competition because government
A) can be influenced by monetary payments. B) can use coercion against competitors. C) has rather consistently forced firms to compete when they preferred not to. D) is charged with protecting the public interest. E) is under the thumb of monopolists.