If there is no Ricardo-Barro effect, when the government runs a budget surplus, it
A) contributes to financing investment.
B) competes with businesses for private saving.
C) shifts the demand for loanable funds curve rightward.
D) shifts the supply of loanable funds curve leftward.
E) shifts the demand for loanable funds curve leftward.
A
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Crowding out refers to a decline in ________ as a result of an increase in ________
A) government purchases; private expenditures B) government purchases; tax rates C) private expenditures; government purchases D) tax revenues; unemployment
How will each of the following affect the steady-state growth rate of the standard of living? Assume the economy is currently in the steady state
a. an increase in the depreciation rate b. an increase in the growth rate of labor-augmenting technological change c. a decrease in the saving rate d. a decrease in the labor-force growth rate
Intellectual property rights protection is a critical issue for the pharmaceutical industry among others
Indicate whether the statement is true or false
When a corporation uses profits to pay for the purchase of new capital equipment, this is known as
A) reinvestment. B) a coupon payment. C) dividend. D) collusion.