Solved

Refer to the Above Diagram

Question 202

Multiple Choice

Refer to the above diagram.Initially assume that the investment demand curve is I<sub>d1</sub>.Which of the following effects of a budget deficit might shift the investment demand curve from I<sub>d1</sub> to I<sub>d2</sub>, wholly offsetting any crowding-out effect? A) an improvement in profit expectations by businesses B) a decrease in saving C) a decline in the interest rate D) an increase in the marginal propensity to consume Refer to the above diagram.Initially assume that the investment demand curve is Id1.Which of the following effects of a budget deficit might shift the investment demand curve from Id1 to Id2, wholly offsetting any crowding-out effect?


A) an improvement in profit expectations by businesses
B) a decrease in saving
C) a decline in the interest rate
D) an increase in the marginal propensity to consume

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q84: Other things equal, the stock of capital

Q196: Currently, the general agreement about a proposed

Q197: The Federal budget deficit is calculated each

Q197: The following budget information is for a

Q200: During the last decade, the gross federal

Q203: Refer to the</p></div><svg width=

Q204: Refer to the</p></div><svg width=

Q210: The "crowding-out effect" suggests that:
A)the economy's productive

Q213: The crowding-out effect of borrowing to finance

Q217: Payment of interest on the public debt

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents