The crowding-out effect is likely to be the strongest during periods of
a. recession.
b. large budget surpluses.
c. high employment.
d. expanding money supply.
c
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In the short run, the Federal Reserve can affect which of the following?
A) the growth rate of real GDP in the economy B) the inflation rate C) the unemployment rate D) all of the above
A decrease in the price level will most likely have what effect on the consumption function?
A. It will shift upward. B. It will shift downward. C. It will cause movement downward along the function. D. It will cause movement upward along the function.
Long-run economic rent or profit do not exist for fixed factors like land because
A) bidding drives up the price of the factor until no economic rent exists. B) there is no market for such factors. C) these factors have L-shaped isoquants. D) these factors will earn economic profits.
Which of the following will not contribute to increasing the stock of physical or human capital of a nation?
a. an increase in savings b. a reduction in taxes on capital gains and stock dividends c. a lack of enforcement of private property rights d. the subsidization of higher education