A decrease in the budget deficit will have a:
A) more negative effect on income when crowding out is strong.
B) more positive effect on income when crowding out is weak.
C) less negative effect on income when crowding out is strong.
D) less positive effect on income when crowding out is weak.
Correct Answer:
Verified
Q42: When interest rates go up, it is:
A)more
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
Q48: If a fiscal expansion financed by government
Q49: If interest rates adjust to equate savings
Q50: When the government runs a deficit it
Q51: Expansionary fiscal policy that raises the budget
Q52: If private investment is relatively sensitive to
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