When interest rates go up, it is:
A) more expensive for businesses to borrow, so investment falls.
B) more expensive for businesses to borrow, so investment increases.
C) cheaper for businesses to borrow, so investment falls.
D) cheaper for businesses to borrow, so investment increases.
Correct Answer:
Verified
Q37: Crowding out is associated with:
A)a reduction in
Q38: Fine tuning the economy with fiscal policy
Q39: Although macroeconomics textbooks have taught the logic
Q40: Using fiscal policy to stabilize the economy
Q41: Which of the following issues will economists
Q43: Suppose most economists agree that the target
Q44: Most of the government budget is mandatory
Q45: The crowding out effect:
A)increases the multiplier effect,
Q46: Crowding out will be less likely to
Q47: A decrease in the budget deficit will
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