The crowing-out effect occurs because of
A) higher prices induced by the expansionary fiscal policy.
B) higher interest rates induced by the expansionary fiscal policy.
C) higher inflation induced by the expansionary fiscal policy.
D) higher output induced by the expansionary fiscal policy.
Correct Answer:
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Q1: Which of the following statements about the
Q2: The main difference between classical economists and
Q5: In the Keynesian model of the business
Q6: In the Keynesian model,the economy can be
Q7: In the Keynesian model,wages and prices are
A)sticky
Q8: Keynesian business cycle theory cannot account for
Q9: Unanticipated increase in the government expenditures would
A)shift
Q10: The crowding-out effect refers to a situation
Q11: In the Keynesian model,
A)the short-run aggregate supply
Q14: Keynesians are skeptical of the classical theory
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