Crowding out refers to the situation in which:
A) borrowing by the federal government raises interest rates and causes firms to invest less.
B) foreigners sell their bonds and purchase U.S. goods and services.
C) borrowing by the federal government causes state and local governments to lower their taxes.
D) increased federal taxes to balance the budget causes interest rates to increase and consumer credit decreases.
Correct Answer:
Verified
Q36: When crowding out occurs, higher government spending
Q37: Crowding out occurs when the federal government:
A)
Q71: The crowding-out effect can be:
A) zero.
B) partial.
C)
Q72: Critics of Keynesian fiscal policy argue that
Q73: Since 1960, the federal government has never
Q75: Supply-side economists argue that less government spending:
A)
Q77: Supply-siders argue that:
A) reductions in government spending
Q78: The federal budget deficit has been over
Q79: Which of the following statements about crowding
Q81: Internal ownership of the debt refers to
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