"Crowding-out" refers to the process by which
a. high consumption leads to low saving and investment.
b. the Fed prevents "runs" on banks.
c. Fed sales of bonds reduce the ability of corporations to buy bonds.
d. increased government spending raises interest rates, thus lowering investment spending.
d
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Crtically evaluat the following statement. "It is possible to calculate comparative advantage even when prices are not known."
What will be an ideal response?
Which of the following is an example of The Big Squeeze?
A. High profits attract new entrants, which increases supply, and drives down prices. B. High profits drive out businesses, which increases supply, and drives up prices. C. High profits drive out businesses, which increases supply, and drives down prices. D. High profits attract new entrants, which increases supply, and drives up prices.
It has been noted that when the price of a good increases, people purchase less of the good. This is an example of
A) macroeconomic analysis. B) irrational behavior. C) normative economic analysis. D) positive economic analysis.
Many manufacturers attempt to build fairly close relationships with the firms that supply their packaging and boxes. Why?
What will be an ideal response?