Based on the graph showing the crowding-out effect, higher interest rates cause a shift from ______.
a. AD1 to AD2
b. AD2 to AD1
c. AD2 to AD3
d. AD1 to AD3
c. AD2 to AD3
You might also like to view...
A VAR with five variables, 4 lags and constant terms for each equation will have a total of
A) 21 coefficients. B) 100 coefficients. C) 105 coefficients. D) 84 coefficients.
Which of the following is not an example of a commonly tax-funded program?
A. Public education. B. Highways. C. Housing to those in need. D. Oil and gas production.
The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is:
A. price. B. expectations. C. preferences. D. incomes.
Suppose that one firm produces a product that results in negative external costs to society. This information suggests that
A. at the market price, quantity demanded is less than quantity supplied. B. the equilibrium market price of the product includes the external costs borne by society. C. resources are under-allocated to the firm. D. resources are over-allocated to the firm.