If a fiscal expansion financed by government bond sales does not affect interest rates, then:
A) no crowding out will occur.
B) crowding out will be relatively small.
C) crowding out will be relatively large.
D) crowding out will be so great that output will decline.
Correct Answer:
Verified
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
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
Q53: In practice, economists:
A)agree about what the level
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